Block Expands Cash App into Full-Service Banking
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Block is expanding its services to position Cash App as more than just a payments tool. The FinTech, led by Jack Dorsey, is pushing deeper into banking products for US households.
The app now counts 57 million monthly active users, but converting them into banking customers is a challenge. Currently, 2.5 million users are routing their paychecks into Cash App, a figure that has grown by 25% year-over-year. Block sees this as a key indicator that users are willing to go beyond P2P transfers.
To solidify that shift, Cash App now offers high-yield savings accounts, debit cards, and short-term lending. The FinTech has also leaned into BNPL through its Afterpay acquisition. In March, its banking subsidiary, Square Financial Services, received FDIC approval to issue consumer loans, further blurring the line between FinTech and traditional banks.
“Our long-term goal is to be the primary provider of banking services to the vast majority of Americans. In order to do that, you need to cross the chasm in terms of reputation and brand recognition from a simple peer-to-peer app to a full-fledged suite of banking services.” Block Executive Officer & Business Lead Owen Jennings said.
But Block isn’t the only FinTech making a play for mainstream digital banking. Chime, Robinhood, and other FinTechs have already built significant customer bases. At the same time, regulatory scrutiny has intensified—Cash App was recently ordered by the CFPB to refund $120 million over fraud-related disputes.
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