How Does The Cash App Make Money? 

The Cash App is a peer-to-peer payment application that enables people to send money to each other at no cost. 

Now one of America’s most popular P2P payment apps, the Cash App was launched in 2013 by Block Inc., formerly known as Square.

It has since expanded its product portfolio to offer a debit card, Bitcoin as well as stock trading, and free tax filing. 

But how does the Cash App, which generated $12.32 billion in revenue during 2021, actually make money? 

Businesses can get paid for goods and services using their own $Cashtag. The merchant pays a flat 2.5 percent fee whenever accepting a payment. 

MERCHANT FEES

The cash app sends trading data to so-called market makers, which in turn share a portion of their profits with the app. 

Payment For Order Flow

While stock trading is free thanks to the payment for order flow mechanism, users pay a fee whenever they buy or sell Bitcoin. 

BITCOIN FEES

You can speed up deposits, which normally take 2 days, by paying a fee of 0.5 – 1.75 percent. The fee depends on the amount of money deposited.

INSTANT DEPOSITS

The Cash App-branded debit card imposes a fee on merchants whenever you pay for goods and services. 

Interchange Fees

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