All You Need to Know About Cash App

In the dot-com bubbleF during 1995 and 2000, internet adoption proliferated. The NASDAQ stock market rose to an all-time high as capital investments poured into new startups.

In 1998, the founding of PayPal initiated electronic peer-to-peer (P2P) payment systems for online businesses. In the wake of the dot-com bubble bursting, the popularity of P2P payments remained.

During the dot-com bubble, programmer Jack Dorsey came up with the idea that would lead him into becoming an internet entrepreneur.

Dorsey co-founded Twitter, which launched in July 2006. Less than three years later, he co-founded Square Inc.

By October 2013, Square launched a mobile app subsidiary called Cash App.

What is (Square Inc.) Block?

Cash App launched under Square Inc. Dorsey helped co-found Square to provide point-of-sale systems to small and medium-sized businesses.

Square also permitted businesses to accept payments via tablets and smartphones.

The company went public in November 2015. In December 2021, Square rebranded to Block Inc.

By 2022, Block had grown its operations to eight countries, accepting up to 130 different currencies worldwide.

Between 2012 and 2022, Block’s annual revenue grew from $203 million to more than $17.5 billion. That represented 8,600% growth in a decade, an astonishing accomplishment for Dorsey.

Still, Block’s market cap remains half that of PayPal’s.

One way Block competes with PayPal comes from Cash App.

What is Cash App?

Most Americans are familiar with Venmo. Venmo is a free mobile app for P2P payments via computers, laptops, tablets, and smartphones. Its ease of use made it one of history's most popular payment apps.

PayPal gobbled up Venmo in 2013 as part of its $800 million acquisition of Braintree. Braintree, a mobile and web payment system, bought Venmo for over $26 million not long after it launched.

To compete with PayPal, Square launched an early version of Cash App known as Square Cash. Marketed toward small businesses, Square Cash permitted digital transactions with a unique $cashtag.

Available to users in the U.S. and U.K., Cash App also offers a Cash Card. The Cash Card attracted users who might be skeptical of using a mobile app for online financial transactions.

The Cash Card links to a user's balance as a Visa debit card. It's also eligible for ATM withdrawals with a $2 fee and in-store and online purchases.

How Does Cash App Work?

Cash App originally featured free P2P payments between registered users. There was a 1.5% fee for making withdrawals.

To help generate revenue, Cash App allowed users to maintain a balance. Instant transfers cost 0.50 to 1.75% of the transfer amount, with a minimum of $0.25.

Other banking services via Cash App include direct deposit and savings (without interest).

There’s also a “Boosts” rewards program for Cash Card holders. Users get Boosts (discounts) at various participating retailers.

Online gamers may also find gambling sites that take Cash App.

How to Use Cash App: Basic Features

You’ll need to add a bank or card to get started on Cash App. Click your Profile Icon in the upper right. Then, scroll down and tap Linked Banks. You may choose either Link Bank or Link Credit Card.

First, however, you’ll need to link a debit card. Cash App permits Visa, MasterCard, Discover, and American Express cards.

To view a received payment on Cash App, click the Activity tab on the home screen. Users may also visit cash.app/account and select Activity from the left-hand sidebar.

To send payments, open the app and enter the desired amount. Then click Pay. You can then enter a $cashtag, email address, or phone number associated with the recipient's account.

Via cash.app/account, users may also choose Pay & Request. Select from your Cash Balance or a linked bank account and click Pay.

To Add Cash to your account, click the Money tab at the bottom left corner. Select Add Cash, enter an amount, and then click Add. You must enter your PIN or use a Touch ID to confirm.

To Cash Out, click the Money tab. Then click Cash Out. You may enter an amount, choose a deposit speed, and confirm from there. Users may also Cash Out from the desktop version.

Trading Bitcoin and Stocks on Cash App

In 2018, Cash App began allowing users to buy and sell Bitcoin. Users could trade stocks in the following year.

Most of Cash App’s revenue comes from fees associated with Bitcoin trading.

Cash App generated $5.9 billion in annual revenue in 2020, with almost $4.6 billion coming from Bitcoin transactions. With $12.3 billion in annual revenue in 2021, the app took over $10 billion yearly from Bitcoin.

Trading Bitcoin and stocks on Cash App is as easy as tapping a button.

Cash App Makes Banking and Finance Easier

The future of banking and finance derives from digital transactions and mobile apps. An option like Cash App simplifies P2P payments.

With three million annual users in 2016, Cash App had grown to more than 50 million yearly users in 2022.

Between 2019 and 2020, the amount of Cash Card holders doubled to seven million. As of 2022, there were 18 million Cash Card holders.

With numerous features, Cash App remains simple, easy to use, and accessible to millions in the U.S. and U.K.