Cash App Launches New Stock & Cryptocurrency Giveaway Feature


  • Cash App has launched a new tool that allows customers to send stocks and bitcoins to other users.
  • The new functionality builds on the Cash App peer-to-peer payment feature set.
  • Cash App has been a major revenue driver at Block throughout the pandemic.

The old method of donating shares in public companies may soon be replaced by paper share certificates.

App Cash

, the personal finance app founded in 2013 and owned by payments giant Block, is launching a new service that aims to simplify the process of sending stocks and bitcoin from one customer to another.

The tool, which launched on Tuesday, will allow Cash App customers in the United States to send bitcoin and stock gifts to other Cash App customers at no cost.

Cash App is the personal and investment banking arm of Block, the payments company co-founded in 2009 by CEO Jack Dorsey which until December was known as Square. Securities services for clients investing through the app are provided by Cash App Investing, Block’s brokerage affiliate.

Application cash actions

Users will be able to choose the type of asset they want to use to send to other users.

App Cash

“We’ve been thinking for some time about blurring the line between a currency and an asset, being able to send different assets, and being able to move money in a thoughtful way that also has flair and personality.” Ryan Budd, head of financial services at Cash App, told Insider.

It took about a year to create the giveaway function, Budd said. It is a product, he added, that relies on Cash App to deploy a set of investment tools, including fractional share trading, at the end of 2019.

Cash App has been a major revenue driver at Block through its growth during the pandemic. In 2020, Cash App revenue increased 440% over the previous year. Excluding gains related to the rise in the price of bitcoin, it increased 137%.

Cash App has also aggressively hired as it builds teams working on both consumer and business-centric technologies, and it now accounts for nearly 50% of Block’s gross profit, including crypto gains, in third. trimester.

Users don’t need to own bitcoins or stocks to send them as gifts

Simplicity underlies the new giveaway functionality, as Cash App customers who send a giveaway of a stock or bitcoin don’t have to own the assets themselves.

The giveaways are funded from a cash balance in a Customer’s Cash App account or a linked card. The recipient can choose to accept it and convert it to specific stock of the sender’s choice or bitcoin, or choose a cash transfer instead.

Cash App already allows users to send themselves bitcoin directly from their bitcoin balance held in the app.

There are several key aspects to the new payment functionality, Budd said. On the one hand, there is no tax impact on the gains and losses for the sender of the gift through Cash App, as no gain or loss is passed on to the recipient. The giveaway is also denominated in dollars and does not fluctuate with the share price, which means the tool can function as a standard form of peer-to-peer payment.

“We want this to be a way for you to pay a friend for something you owe, and just transact the normal way,” said Budd – using the example of a Cash App customer while paying. another for a cup of coffee via Amazon. Stock.

At the heart of the new payment tool are fractional shares, now common to nearly every brokerage firm, from Robinhood to Fidelity. A Cash App customer who would like to gift a single Amazon stock, for example, would typically have to shell out above $ 3,300. But with fractional shares, they can choose any amount.

“Originally, we designed this whole product to be something where you can buy a dollar of stocks, because we wanted to be accessible to someone who can have a small portfolio,” Budd said.

“Outside of the people who are already investing, the concept of a price per share doesn’t make much sense. Fractions of shares are a great unlock for this feature and other features to come,” he said. -he adds.


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