FinTech News
Cash App Launches Green Status, Borrow Feature, and More
The popular peer-to-peer payments tool Cash App has unveiled a slate of updates and features, including a new loan product.
What’s New with Cash App:
Today, Cash App officially announced 11 new features and updates. In fact, the company describes this as its “most significant product expansion to date.”
First up, the service revealed Cash App Green. Now, customers who either spend at least $500 per month using their Cash App Card or who receive at least $300 a month in qualifying deposits can unlock Green status and “premium features.” For example, while all Cash App Card customers will receive two weekly offers on the card, Green customers will see five. Other Green status perks include increased APY on savings (3.5% versus 1.5%), fee-free access to in-network ATMs, and more.
Another big announcement is the continued rollout of Cash App Borrow. With this feature, customers can borrow up to $500 and pay a flat fee of 5%. While no credit check is required for this feature, users can unlock this option by spending at least $500 a month on their Cash App Card, receiving at least $300 a month in paychecks to the app, or linking an external account that receives at least $500 a month in deposits. Borrow is currently available in 48 states.
In a similar vein, Cash App is bringing Afterpay “buy now pay later” options into the platform. Now, customers can access this service without a separate app or login.
Lastly, Cash App is set to debut a new tool called MoneyBot. This AI-powered feature will offer “contextual insights and actionable suggestions based on customers’ in-app activity.” MoneyBot will not only be able to help users find specific features but will also be able to deliver tailored insights. Currently, MoneyBot is being tested with a small group of users but will roll out further in the months ahead.
What They’re Saying:
Announcing these updates (and more), Executive Officer and Business Lead at Block Owen Jennings said, “The way people earn and manage money has fundamentally shifted, and traditional financial institutions haven’t kept up to meet their needs. At Cash App, we’re hyper-focused on building a platform that reflects how customers are actually participating in the economy today. These new products and features were designed to make money work better for them.”
My Thoughts:
I have yet to full explore these Cash App features, but I still have some thoughts. The most obvious change to me (even before this announcement) was the addition of Green status. Now, my Cash App Card boosts are pretty sad since I haven’t unlocked Green. That’s definitely a bummer, but I guess the gravy train was bound to end sometime.
As for the Borrow feature, I wanted to highlight some stats Cash App provided. According to them, 70% of Cash App Borrow users have credit scores below 580. Nevertheless, to date, the product sees repayment rates above 97%. That’s pretty impressive to me and shows that there really is a market for this type of option.
Overall, as a fan of Cash App it’s exciting to see them trying new things and expanding beyond their P2P roots.
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