The goal of Cash App is to help people manage their money; this single app has you covered with banking, investing, & peer-to-peer transactions. Cash App was created in 2015; as “Square Cash” by Square Inc.; and later changed it’s name to “Cash App” in 2018. Square Inc’s.; mission statement is; “No one should be left out of the economy because the cost is too great or the technology too complex.” Today; the business has over 25 million active monthly users and is outgrowing the competition. Disruption is in the DNA of Square Inc., and Cash App is a manifestation of their values. Here’s are 3 market sectors Cash App is clearly disrupting.
1) Banking
Cash App offers a checking account that you can set up for direct deposits just like any other standard bank account. They offer a free physical and digital debit card they call, “Cash Card.” With help from Visa; it mails for free direct to your home like your standard bank would, and adding the Cash Card to Apple Pay is fast & seamless. I added my Cash Card to Apple Pay a few weeks ago and it’s been working perfectly ever since. Cash App is great with daily transactions; you won’t have a hard time using Cash App in the real world; Apple pay, cash card, and cash codes are three easy ways to pay for goods and services. Potential for a savings account is there, and if implemented could increase the apps total cash in network figure which will help the app to continue to attract new users and maintain low banking costs.
Legacy bankers such as Wells Fargo, or Bank of America haven’t done much in the way of innovation; They still have physical bank tellers, a position that many thought would disappear with the rise in ATMs. Cash App doesn’t own any physical banks that can be robbed for cash and nor does it have any ATMs to maintain. With the adoption of modern technology and the virus conscious society we live in today; don’t you think it might be a good idea to rid our lives of physical cash and physical banks? I’ll let you decide.
2) Investing
•Stocks
Cash App users can invest in the best companies in the stock market while having the option to buy fractional shares of a company. Many investment firms and their apps don’t offer fractional shares; making it hard for the young investor to get into higher priced stocks. For example; with Cash App you can put a minimum of $10 into any company; for example Tesla; if you can’t afford the entire share which is currently around $800 per share. Millennials are investing more into single stocks than ever; they respect mutual funds; but in the era of hyper growth tech stocks, Cash App seems to be positioned to help the young investor get in on some of the action.
• Bitcoin
Bitcoin is a radically new way to store and transact value. The adoption of digital wallets globally has been skyrocketing. Cash is trash has become a saying on Wall Street; because owning cash is a depreciating asset. Bitcoin could have the best chance at becoming a global digital currency, and Cash App is making it easier than ever for young people to invest in the radical technology. The bitcoin investing screen on the app is easily accessible and is next to all your other money management tools.
3) Peer-to-Peer
Sending money to friends and family has been a hyper-growth industry that’s here to stay. You may be familiar with Venmo; but a surprise to most; Cash App has been growing users at 35% increments while Venmo has been slowing to just 2% increments in recent months. The momentum of free peer-to-peer payment systems has been climbing, and the clear frontrunner of 2020 is Cash App. While Venmo is mainly peer-to-peer; Cash App offers many more money management services that go beyond just peer-to-peer. I’ve once heard someone say, “Consumers over time, will always adopt what’s simpler;” and in my view, Cash App is simpler because it centralizes all your money management services. If you could have one app replace multiples, wouldn’t you make the switch? This is a disruptive business and it will be interesting to watch the Cash App grow and mature over the next decade.
Business in the Modern World 