Splitting a peer-to-peer (P2P) payment has traditionally required all participants to be on the same platform, but a new feature from Cash App aims to bridge that gap.
The fintech’s Pools feature enables an organizer to create a shared fund for use cases like buying team uniforms, splitting the check, or funding a group trip. The organizer can set a target amount for the pool, then close it at any time and transfer the funds to their Cash App balance.
This kind of functionality isn’t new to P2P platforms. PayPal launched a money pooling feature last year, and Venmo Groups has offered a similar option for even longer. What sets Cash App Pools part is its flexibility: organizers can invite users both within the Cash App and by sending a link via text to Apple Pay or Google Pay users who don’t have Cash App accounts.
Enticing to the Ecosystem
In an era where many fintechs are striving to become one-stop-shop super apps, some companies are working to keep users within their ecosystem. However, Cash App isn’t chasing immediate revenue growth. Instead, the company is betting that non-users who participate in Pools will be enticed to become active users of the platform.
The launch is also notable as one of the few for Cash App in recent years. During this time, the Block-owned fintech has faced challenges from PayPal and Venmo.
Venmo has seen substantial revenue growth and boasts a highly sought-after customer base of younger adults, which has driven engagement with eBay and JetBlue in recent months.
PayPal has also been on a tear lately, launching platforms that connect major global digital wallets and enable crypto payments at smaller merchants’ checkouts. The company also unveiled its first-ever digital wallet for in-store purchases in Germany and integrated its payments platform with Perplexity’s artificial intelligence chat for AI-powered shopping.
Running Their Financial Life
Meanwhile, the most significant development for Cash App has been the potential addition of Afterpay’s BNPL service. According to CNBC, the Pools launch is part of Block’s effort to revitalize Cash App after a revenue slump.
Despite these struggles, Block still shares some of its competitors’ ambitions.
“We want Cash App to be the financial operating system for the next generation… to essentially be the money app where a customer can run their entire financial life,” said Owen Jennings, Head of Business at Cash App in a statement.
The post Cash App Group Payments to Include Apple and Google Users appeared first on PaymentsJournal.
