How does Cash App work?

Written by: Sarah Sidlow
• Updated •2 min read
This date may not reflect recent changes in individual terms.
A couple stand next to each other in their kitchen while looking at a smartphone together.Image: A couple stand next to each other in their kitchen while looking at a smartphone together.

In a Nutshell

With Cash App, you can quickly send and receive money, make contactless payments and even invest in stocks or bitcoin. There are no fees to set up your account or minimum balance requirements, but you won’t have the same protections you’d have with most traditional bank accounts.
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If you’re thinking about using your phone to send and receive money, pay for goods and services and even start investing, you may be interested in Cash App.

Cash App, the financial platform owned by Block (formerly known as Square), allows you to bank and make transactions using Apple and Android smartphones and devices. You can use Cash App to send and receive money from your contacts and pay for things at participating merchants.

What is Cash App and how does it work?

Cash App is a peer-to-peer financial platform that lets you send and receive money, make payments to merchants and invest in stocks or bitcoin — all through one app on your smartphone.

You start by downloading the app and creating an account, which involves entering your debit card information and linking your bank account.

What’s next?

Cash App may be a good option for quickly and conveniently sending or receiving money for day-to-day things like splitting rent with roommates or paying back a friend. There are similar options available, including Venmo for example.

Keep in mind that while you can store funds in your Cash App account, it isn’t a savings account, which means your money likely isn’t insured (unless you have an account with one of the partner banks) and you likely won’t receive interest on money you have there.

About the author: Sarah Sidlow is a freelance writer and editor based near Detroit. She has a master’s degree in journalism from Georgetown University. Sarah’s work has appeared in Luxembourg’s national newspaper, Washington City Paper… Read more.