CFPB Turns Attention to Block’s Cash App – Digital Transactions

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Block Inc., parent company of Square Inc., has become the latest payments provider to come under scrutiny from the Consumer Financial Protection Bureau. The CFPB, along with several state attorneys general, have asked Block for information on how the company handles complaints and disputes from customers using its Cash App wallet. The investigation was disclosed in a recent regulatory filing, according to Bloomberg News.

cash app is a mobile payment service that allows users to transfer money to each other using a mobile phone application. Cash App users can also buy stocks and Bitcoins directly from their phone. The service is available in the US and UK. Block’s chief financial officer, Amrita Ahuja, told stock analysts in a phone call last month that

Cash App is generating an annual growth rate of 22% and has 44 million monthly active users. As of September 2021, the service reportedly generated $1.8 billion in gross profit.

A screenshot of Cash App.

To block reportedly cooperated with the CFPB and state attorneys general.

In a recent 10-K filing with the Securities and Exchange Commission for the year ending Dec. 31, 2021, Block says investigations by regulatory agencies are not uncommon.

“Various regulatory agencies in the United States and elsewhere in our international markets continue to review a wide variety of issues that could impact our business, including product liability, import compliance and export, accessibility for people with disabilities, insurance, marketing, privacy, data protection. , information security, and labor and employment issues,” the company says in the filing. “As our business continues to grow and expand, additional rules and regulations may become relevant.”

Additionally, the company says it is not possible to reliably determine potential liability arising from the investigation, according to the Bloomberg report.

Block could not be reached for comment.

The CFPB’s latest action comes as the agency steps up its investigation into payments players. He actively investigated suppliers of buy now pay later, including Afterpay Ltd., which Block acquired in January. The acquisition of After-payment creates an opportunity for Block to more closely integrate its seller and consumer businesses, Square and Cash App, according to the company.

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