Cash App needs to drive users to use more features and improve its customer service in order to grow from peer-to-peer payments into a full-fledged banking service, Block Head Jack Dorsey said at a conference on Tuesday.
Oakland, California-based Block owns Cash App along with point-of-sale software Square and buy now, pay later service Afterpay. Block is seeking to make the app the primary bank for Cash App’s users,many of whom are younger and lower-income. To achieve that goal Block is focused on growing usage and volume of the P2P app’s direct deposit feature.
Currently, only two million of Cash App’s 57 million active users are using the app’s direct deposit feature to transfer some, or all, of their paycheck into the app, according to J.P. Morgan Managing Director Tien-Tsin Huang who spoke with Dorsey at the bank’s global technology, media and communications conference.
Dorsey said Block is focused on getting users who currently deposit a portion of the paycheck into Cash App to send the whole amount there. “Our goal is to continue to shift that share of direct deposit,” Dorsey said, adding that having users to try new features may lead them to put the full amount of their paycheck in the app.
To compete with other institutions vying for the ability to hold consumer deposits, Dorsey said Cash App needs to outpace banks in how it treats its customers. “The customer service aspect of our business needs to feel like a product that again makes people say ‘wow!’ I don't think it does today,” Dorsey said.
A Block spokesperson pointed to the company’s shareholder letter from the fourth quarter of last year when asked about how the company would get Cash App users to use more features and how it planned to improve Cash App’s customer service.
The letter listed features such as credit building and subscription management tools, along with traditional banking offerings like wire transfers and bill pay as ways it could entice Cash App users to bank with them. Block launched an internal generative AI tool in Q4 2023 aimed at helping its customer service team respond faster to questions, the letter said.
A report this month by investment firm TD Cowen said consumers were increasingly using Cash App for services beyond P2P payments, including for banking services, direct deposit and shopping.But the report also found that young consumers, a target audience for the app, value physical bank locations, which Cash App does not have.
Block is also facing government scrutiny.The company’s compliance program, including at Cash App, is under investigation from the Department of Justice. It’s also facing whistleblower complaints of alleged fraudulent activity on Cash App that were filed with other federal agencies.
Additionally, the Consumer Financial Protection Bureau said it may take “legal action” related to customer service concerns connected to Cash App, according to a company disclosure in February.
Dorsey acknowledged the compliance concerns on Tuesday, saying the company was in a “phase” where it had to have many conversations with regulators. “We have to help educate regulatory bodies,” Dorsey said.“We have to help bring new technologies to bear and always be ten steps ahead of the adversaries that are always going to be there.”
FAQs
To help keep Cash App safe, you are required to verify your identity on Cash App. You'll be prompted to verify your identity if you attempt to: Send or receive more than $1,000 over a 30-day rolling period. Send or receive more than $1,500 total.
What is the add cash feature on Cash App? ›
If you need to add funds to your Cash App balance — for example, to make a purchase with your Cash Card — head to the “Money” tab on the app's home screen. Press “Add Cash” and follow the prompts to choose an amount you want to deposit.
Why is my Cash App transfer declined for security reasons? ›
If Cash App notices potentially unauthorized activity on your account, we may decline Cash App Card transactions for your protection. Depending on the transaction, we may send you a notification asking you to confirm whether you recognize the declined transaction within your app.
What to do when Cash App says more information required? ›
Cash App is required to know info about our customers. We may require you to verify your income to gain access to certain features or products. To verify this info, you'll need to share documents like your pay stubs or tax forms.
Why is Cash App telling me further action is required? ›
There are several reasons why your Cash App Pending Payment, including: The recipient still needs to activate their account. The recipient has yet to accept the payment. The recipient has set their account to require manual approval of payments.
What is the limit on the Cash App? ›
Cash App imposes limits on the amount of money you can send and receive. For unverified accounts, the sending limit is up to $250 per week, and the receiving limit is up to $1,000 within any 30-day period ☎️+1(808)800–5134. Verifying your identity can increase these limits.
Why is Cash App charging me a fee to receive money? ›
Cash App will automatically deduct a 2.75% processing fee on each payment you receive to your Cash App for Business account. When you receive a payment from a customer on your Cash App for Business account, the amount you receive in your balance will not include the deducted fees.
Why is my Cash App not letting me transfer money? ›
First and foremost, make sure that your internet connection is stable and strong. Next, check if you have sufficient funds in your account or linked debit card for the transfer. If not, add money to your Cash App balance or linked bank account. Another reason why transfers fail is due to outdated app versions.
Why is my Cash App declining when I have money? ›
Cash App might decline transactions for various reasons including suspected fraudulent activity, incorrect credentials, exceeding limits, or specific account settings.
Why is my Cash App blocked for security reasons? ›
If we notice unusual activity on an account, we may temporarily lock the account. We lock accounts because we prioritize your safety and want to be proactive in preventing fraudulent activity. An account lock will not affect your account or prevent you from sending future payments.
Absolutly No, Cash App does not guarantee refunds for scams (+1-855-740-6610).
Can you have two Cash App accounts with the same SSN? ›
You can use one Social Security Number to verify two or more Cash App accounts. As long as you have a Social Security Number and live in the United States, all you need to create two (or three, or four) Cash App accounts is two (or three, or four) phone numbers or email addresses.
What happens if I don't verify my identity on Cash App? ›
If you haven't verified your identity, your balance limit is $1,000.
How can you tell if someone is scamming you on the Cash App? ›
You're asked to send money to an unfamiliar account or using a payment method that seems unusual. Instead of asking for money, a scammer might tell you to buy and send a gift card or a photo of the gift card number and PIN. You may be asked to deposit money into an account you don't own.
Why is Cash App under investigation? ›
Areas under investigation include whether the company failed to gather sufficient information on customers to assess risks, if Square processed transactions involving countries subject to economic sanctions and if Block handled cryptocurrency transactions for terrorist groups. Shares in the company were last down 8.8%.
How much can you send on Cash App without verification? ›
For unverified users, the weekly sending limit is limited at $1,000, ☎️+1(808)800–5134 which includes both sending and receiving money. Once you verify your identity on Cash App, the weekly limit extends, allowing you to send up to $7,500 within seven days ☎️+1(808)800–5134.
