3/1/2023
There are more and more apps that want to make payments easier, let you invest with little money and give you the convenience of a digital bank. In this category we find Cash App, a platform with 36 million active users and that we will review for you to get to know it better.
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What is Cash App?
Similar to other popular platforms, Cash App is a P2P payment service created by Block Inc (formerly Square Inc) and available for Android and iOS. Already with more than 100 million downloads, it is available to those living in the United States or the United Kingdom.
For reference, Cash App is one of several financial products offered by the San Francisco-based company. Unlike other similar applications, it extends its operability for you to use it as a traditional bank account.
What Cash App is for?
This cell phone application has multiple functionalities, although the best known is to send money to whomever you want, it also offers a checking account without fees in which you can even receive your payroll.
With this account you can obtain a free personalized debit card to make payments in stores and withdraw cash at ATMs.
It also offers the possibility to invest in the stock market and even in cryptocurrencies from just $1.
How to send money with Cash App?
As with PayPal or Zelle, the dynamics with Cash App is very intuitive. To send or receive money, you only need to have the phone number or email of the beneficiary.
You can also use the Cashtag, which is the user name that everyone registers when opening an account on this platform.
Once you have entered the recipient's information, the application asks you where you want to get the money for the payment/transfer.
In this case, depending on the instruments you have added, you can use 3 options: bank account, credit card and Cash App balance. This platform accepts American Express, Discover cards, Mastercard and Visa cards.
Costs of sending money with Cash App
When you send money from your balance or associated bank account, you will not be charged anything, it is totally free. But if you use a credit card, the fee is 3% of the amount.
Limit of money you can send
Sending anonymously, $250 is the maximum you can move in a 7-day period, although this would go up to $7,500 weekly/$17,500 monthly if you decide to verify your identity by entering the last 4 digits of your SSN, full name and date of birth.
How to receive money with Cash App?
When you receive money from your peers, those funds initially go to your balance in the app. From there you can move them to your bank account or debit card.
The standard transfer to a bank takes 1-3 business days and the fast transfer to your debit card happens almost instantly with a fee of 1.5% of the amount.
In case you don't want to be depositing money into your bank account, you have the option to order the Cash Card. This plastic works like a Visa debit card and allows you to use the balance on the platform to buy/pay at online or offline merchants. If you use it at an ATM, the charge is $2 plus operator fees.
Other services offered by Cash App
With the intention of differentiating itself from PayPal, Venmo, Zelle and other similar applications, Cash App has 2 additional elements to the ones you already know:
- Investment. This platform lets you invest in ETFs and stocks in the U.S. stock market with just $1 and no commissions. This service is only available to U.S. residents over 18 years old. Of course, to access this option you have to verify your identity, provide an address and disclose your employment status.
- Banking. In addition to receiving/sending money, with this application you can receive other income, such as your tax refund check or your paycheck through direct deposit. For this, you have to apply for the Cash Card to enable this service. An advantage is that you can receive your salary up to 2 days before.
How to download Cash App?
This is an application for cell phone and tablet that you can only get through Android and Apple download services:
Pros and cons of using Cashapp
If you decide to use this app to try it out or because your family or friends have already recommended it, here are the pros and cons:
Advantages
- Transactions are secure thanks to encryption.
- It gives you the opportunity to invest in stocks, cryptocurrencies and ETFs.
- You can request the Cash Card to pay in physical stores or online.
- You are not charged fees when you pay with balance, bank account or debit card.
- The platform gives you a routing and account number to deposit your paycheck or pay your bills.
Disadvantages
- You do not earn interest.
- The charge for using the credit card is high.
- The money in the app is not FDIC insured.
- You are charged $2 plus other fees for using an ATM.
- There are 2 basic limits without verification: you can send/withdraw $250 a week and receive $1000 in 30 days.
How safe is it to use Cash App?
According to sources consulted, Cash App is very secure. It has encryption of all your data and PCI-DSS level 1 certification, the best protection in terms of market standards.
In addition, this platform comes with built-in security features such as PIN and Touch ID depending on the smartphone you have.
Español: ¿Qué es Cash App, para qué sirve y cómo funciona?