Square, led by CEO and Twitter Co-Founder, Jack Dorsey, launched its Cash App mobile payments system in 2013 to US customers. Users of the mobile app assign themselves a unique username, called a “Cashtag”, and can use Cash App for general financial services, including:
The recent addition of Bitcoin rewards on the Cash Card was the result of Cash App’s 2020 Q3 earnings report, which showed they brought in $1.63 billion in Bitcoin revenue stemming from the app’s Bitcoin buy feature. This represents an increase by more than 1000% over 2019’s Q3 revenue.
Compared with other payment services like PayPal, which recently rolled out crypto buys and sells to its mainstream user base, Cash App is more geared toward the millennial user who is both tech savvy and keen to embrace digital currency technologies. The artwork on Cash App’s homepage reflects this; the imagery appeals to this audience segment and stands out from PayPal’s homepage, which has the look and feel of more mainstream financial and tech platforms like Google Pay or Facebook.
Originally created to compete with Venmo, Cash App has developed unique features that attract cryptocurrency users as well as those in search of a quick and easy mobile payments service.
Cash App enables peer-to-peer payments with 3 easy options:
Through the use of the Cash Card debit card, users can also make online and point-of-sale (POS) payments at any retailer that accepts Visa.
Cash App’s “Cash Card” is a zero fee Visa debit card that you can use to pay at retail establishments and while shopping online. Instead of being connected to a bank, however, Cash Card is directly connected to your Cash App account and is good to use anywhere where Visa is accepted.
“Boosts” are similar to credit card cash back incentives that pay out when users transact at partner establishments. With the Cash Card, you can choose one company at a time to receive your cash-back or Bitcoin-back payments. To access the Boost feature, follow these steps:
While you can only select one retailer for activation at a time, there are no limits to how many times you swap out another retailer to ‘boost’. Retailers can include Starbucks, McDonalds, USPS, Shake Shack, and many more. Check with this updated Cash App Boost list to see the current participants in the Cash App Boost program.
Cash App’s Cash Card can be used at any ATM for withdrawals. Each transaction is charged $2.00 by Cash App (other bank ATM fees may also be charged). If any customer receives monthly direct deposits into their Cash App account of $300 or more, all ATM fees (by CashApp and banks) are instantly reimbursed.
Maximum ATM withdrawal amounts are:
Cash App works with Lincoln Savings Bank to provide a direct deposit feature for paychecks and tax returns. They also offer a program where you can receive your direct deposit up to 2 days earlier than with conventional banks for a small fee, similar to PayPal’s instant transfer feature..
Users setting up direct deposit will receive a Cash App routing number and account number so they can provide that information to their employer or the IRS to initiate direct deposits. (Note: Cash App monies are not FDIC insured).
Bitcoin buys and sells using the Cash App are carried out at a mid-market rate which is determined by exchange prices. The fees will be listed on the trade confirmation at the time of your transaction. The 2 types of Bitcoin fees are:
Tax reporting is available for your Bitcoin transactions on Cash App. Users who sold Bitcoin during the tax year will receive a 1099-B by February 15th of the following year. The 1099-B is available for users to download in their Cash App account.
The Cash App website includes a very well developed FAQ and help center, which includes security protocols that users can take to secure their Cash App accounts.
Also included is a nice introduction to Bitcoin for those new to cryptocurrencies, with appealing graphics, a storytelling format, and easy to understand details about Satoshi Nakamoto and how Bitcoin came into existence.
At this time there is no account inactivity fee as you would have at a traditional bank or PayPal.
To fund your Cash App account you have multiple options:
Currencies available for funding a Cash App account are USD and Bitcoin.
Users can transfer funds from Cash App to their bank account, a process that takes up to 3 days. The option for immediate transfer is available for an extra fee of 0.1 to 0.15%.
ATM withdrawal limits with Cash Card or enabled prepaid Visa credit cards are:
Cash App users with a balance of 0.0001 Bitcoin or more can withdraw their crypto to an external wallet, a process that takes about 30-40 minutes
Withdrawal limits for cash and Bitcoin:
$2000 per 24-hour period
$5000 per 7-day period
$10,000 per 30 day period
All new users will automatically be put into a restricted account that disqualifies them from making payments to other Cash App customers. Otherwise all other services are available.
After linking an external US bank account and initiating a transfer from your Cash App balance to another Cash App customer, you are brought to the upgrade feature to apply for an Unrestricted Account. You’ll be prompted to provide additional information to verify your identity.
Users may also be asked for additional information if they request to raise the per transaction limits, such as full name verification, date of birth, and the last 4 digits of their tax I.D. number.
For merchants, Cash App processes transactions on their behalf, charging 2.75% per transaction and depositing the funds into the merchant’s Cash App account.
Cash App provides a modern, unique experience that is tailored for a mobile ready, tech savvy audience. The app loads quickly and provides an aesthetic and cutting edge graphical presentation. In Google Play, Cash App has received over 275,000 reviews, averaging 4 stars. The primary complaint is problems around customer support.
Navigating Cash App results in a sleek, fast, and easy-to-comprehend experience with helpful support documentation along the way to explain features and guide the users.
Support mechanisms are well designed and multi faceted on Cash App. They have a full automated support search feature that will also connect you to human support if needed.
Cash App also provides a Twitter channel dedicated to support that we tested; a knowledgeable rep replied within a few minutes. The CashSupport Twitter service is open from 6am to 6pm seven days a week.
Cash App provides multiple security features, including:
No hacks have been reported.
When offering banking services like payments, direct deposits and debit cards, the lack of phone agent support seems to bother a lot of people, as per reviews in the Google Play App Store. However, Cash App’s Twitter support is responsive and Cash App provides a very thorough FAQ and customer support experience.
The verification experience on Cash App is very different from crypto exchanges like Coinbase and Binance.us, and very little information is required to get going in making payments and buying Bitcoin.
External withdrawals are quick and cheap, with disclosures about the process easy to understand for the beginner. The process of buying Bitcoin is more streamlined here compared with PayPal or Coinbase.
The lack of a desktop version may deter traders from using Cash App, especially since crypto exchanges all offer desktop and mobile. But this easy and fun to use mobile application appears to target the millennial, who primarily turns to digital services for their banking and has no problem incorporating digital assets into their banking environment.