In 2013, Block (Square, Inc.) released Species which allowed users to send electronic payments to email addresses. The Cash App mobile payment service quickly became a downloadable app for Android and iOS users.
The app allowed users to accept direct deposits and traditional ACH payments. Square then acted as an alternative option for businesses to use as a point-of-sale system.
To stand out from competitors like Venmo (a subsidiary of PayPal), Google Pay, and Apple Pay, Square introduced a Cash Card in 2017. Mobile users who linked their Cash Card to their accounts could make ATM withdrawals.
In 2018, the company started allowing its users to buy and sell Bitcoin through the app. Cash App Investing – buying and selling stocks and ETFs – also became available in 2019.
Cash App saw a 3,000% increase in annual revenue between 2018 and 2021. About 75% came from Bitcoin transactions alone.
Along with the growing popularity of Bitcoin, some may use Cash App to play online.
Why is the Cash app growing? Here’s a closer look.
The Bitcoin Lightning Network
In early 2022, Cash App added the Bitcoin Lightning Network. This feature introduced a wallet for Bitcoin via any BTC address or Lightning QR code.
PayPal only allows users to “dungeon” their non-transferable Bitcoin on the platform.
Free until 2019, Bitcoin purchases on Cash App require a fee of around 2%. It comes next to the spread between the buy and sell price of Bitcoin offered by the Cash App exchange.
The Bitcoin Lightning Network allows users to send some or all of their BTC to other accounts. They can transfer BTC between network addresses by scanning the appropriate QR code.
About half of Block Q1 2022 revenue comes from bitcoin.
Peer-to-peer (P2P) payments
Businesses can accept Cash App payments through the app with their $Cashtag. Users have the ability to request or pay for goods and services.
Cash App users can appear in the search bar or from the contact list on a user’s phone. The ability to scan a QR code is an added feature.
From the $ tab at the bottom of the screen, users can click on the square-shaped button in the upper left corner. Options then include Scan a QR code or My code.
My Code generates a personal QR code attached to a user’s account.
A user can share their $Cashtag via:
- A copied link
- A downloadable photo
- Any other app on their phone (WhatsApp, Gmail, Facebook, etc.)
Cash App users can also send stocks and ETFs. The Send Stock feature transfers money for 1,600 available stocks or ETFs of the sender’s choice.
Users can access their cash balance from the Bank (Balance) tab at the bottom left of the Cash app screen. Routing and account numbers to the Cash App account are separate from linking a bank or debit card.
Users can add money to their balance or withdraw money. Standard bank account deposits are free within 1-3 business days. Instant deposits linked to a debit card cost from 0.5% to 1.75% or at least $0.25.
The direct deposit feature allows users to get paid up to two days faster than a traditional bank. Auto Setup lists popular payroll providers and employers such as:
- United Parcel Service (UPS)
- Home deposit
Similar functionality comes in the form of bank transfers via Cash App routing and account numbers. Other banking services include:
- Deposits of paper money (at deposit points)
- Check deposits
- Recurring deposits
- Free tax return
The Cash App Cash Card is an option for users to apply for a customizable Visa prepaid card. This card connects to a user’s Cash App balance.
ATM withdrawals with the Cash Card include a $2 Cash App fee and all additional bank charges. (Users who receive more than $300 in direct deposits per month may receive discounts.)
Besides Lyft and DoorDash, the Boost feature offers discounts at various retailers such as:
- shake shake
- sam’s club
- Firm mattress
Boost discounts can be redeemed at participating grocery stores, restaurants or cafes. (Some discounts offer 10% Bitcoin with at least $1.50 purchased and at most $7.50 earned in BTC.)
Key points to remember
Most of the recent growth attributed to Block’s Cash App has come from Bitcoin purchases. As businesses closed during the COVID-19 shutdowns, interest in cryptocurrencies has reached unprecedented heights.
Cash App’s Bitcoin revenue has seen explosive growth from $510 million in 2019 to $10.02 billion in 2021. At that time, the company’s annual revenue reached $12.3 billion. dollars with a profit of $2.07 billion.
Block’s Cash App started with a few million users in 2016. The company had over 70 million active monthly users as of 2021.
Cash App gross profit increased 26% YoY for the first quarter of 2022. Bitcoin revenue declined.
Analysts predicted that Cash App’s frequent innovation would make sustainable growth possible. The company has excellent potential for expansion in international markets.