IIAwards - Review of Cash App

As part of the recently announced IIAwards, in which we celebrate innovations in the fintech and crypto industry, today we will review Cash App from different points of view.

Cash App is a mobile payment service developed by Square, Inc., allowing users to transfer money to one another using a mobile phone app. The service has recorded more than 8 million active users. As of January 2018, Cash App has expanded to support cryptocurrency and stock trading. It is available for users only in the United States.

Cash App ranks among the zero-fee trading services that gain increasing popularity among the younger audiences. Cash App doesn’t charge monthly fees, fees to send or receive money, inactivity fees or foreign transaction fees, however, Cash App charges 3% of the transaction to send money via linked credit card. This is a fairly standard fee compared to other money transfer apps.

What is more, Cash App users can buy and sell Bitcoin, but Cash App will charge two kinds of fees: a service fee for each transaction and, depending on market activity, an additional fee determined by price volatility across US exchanges. Instant deposits incur a fee of 1% to 1.5%. Receiving payments on a business account will incur a 1.5% fee.

Cash App allows users to buy stock in specific companies with as little or as much money as they want to invest. Stocks can be purchased with the funds in your Cash App account. If you don’t have enough funds in the app, the remaining amount will be taken from your linked bank account.

One of the main advantages of the service is the ability to buy fractions of shares - a feature that is highly tailored to the requirements of its key audience. "With As Little Or As Much Money As You Feel Comfortable To Invest." That said, the securities portfolio offered by Cash App is pretty limited.

Cash App offers only mobile trading platforms.

To begin trading on Cash App, one needs to open a transfer account first. The client has to complete a short registration process (takes under 30 minutes) and verify their identity and residential address.

Cash App allows sending and receiving cash using a credit or debit card. It is available for businesses and individuals. Although, if you plan to use both account types, you’ll want to create an account for each. Once you receive money, you’ll need to transfer it from Cash App to your bank account. Using a linked bank account or debit card, you can transfer funds in about three days. Instant transfers are available for an additional fee. After verifying your identity on the app, you’ll be able to send up to 2,500 USD per week. Without identity verification, you’re limited to 250 USD per week. Receivers must also verify their identity. For receivers, the limit is 1,000 USD every 30 days and unlimited after identity verification.

Although Cash App mostly services novice traders, it has not developed its support service up to the task. The "Support" tab on the website leads automatically to the FAQ section that provides numerous vague articles explaining the most frequent problems the clients may encounter. If this section does not propose an answer to an issue at hand, the page allows contacting the customer service. However, customer service can be contacted only by registered users.

Cash App offers only a vague FAQ section.

Cash App is available on the iOS App Store and on the Google Play Store. The app allows users to instantly send and receive money, buy, sell, deposit and withdraw Bitcoin, buy and sell commission-free stocks and obtain instant discounts with the Cash Boost function.

Users who have the Cash Card can choose a specific "boost" on their account that allows them to save money on a purchase with a particular vendor (for example, 10% off an order with DoorDash). Only one boost is allowed at a time, but you can swap boosts as often as you want.

Trading-wise, it allows you to track stock prices in real time and monitor the performance of your overall investment portfolio. Additionally, it is possible to create a list of companies to follow so you can stay up to date on performance.

When trading Bitcoin, the app lets you track the BTC price in real time and get started by buying as little as $1 worth of BTC. Your Bitcoin, or its fraction, arrives in your app instantly. You can then decide to keep it safe in Cash App or withdraw it to a different wallet.

The trading interface is very user-friendly and intuitive. It offers almost no personalization options, however, customization may not be the key requirement for inexperienced traders.

Cash App has security locks including PIN entry, touch ID and facial ID. Cash App’s functionality may walk and talk a bit like a bank, but there is a clear distinction between the app and a bona fide, bank-chartered financial institution. Although the Cash Card is issued by FDIC-insured Sutton Bank, customers’ funds in Cash App are never transferred or held with Sutton Bank and therefore don’t receive FDIC insurance.

Cash App's most recent novelty includes its trading platform, thus the company is in the process of expanding its security offering and perfecting the trading interface.