In recent years, conventional payment methods have slowly started to go by the wayside. Social networks, and the digital age, in general, have accelerated the rise of new transaction options that have not only become widespread but are taking over. Naturally, mobile money transfer services are at the forefront of this revolution, as smartphones are now an essential tool of everyday life.
Know that mobile payment systems are not a new invention. They have been around since 2000. However, they now get used by over two billion people globally, with the number of mobile wallet transactions swelling in every region substantially each year.
Cash App is a growing player in this sphere, launched by Square, Inc in 2013. It is a service that boasts a user base of seventy million, etching close to overtaking PayPal-owned rival Venmo. It is a product expanding through innovation. Thus, below, we aim to explain the following to all parties interested in utilizing this service:
- Is Cash App safe?
- How does the Cash app work?
- Cash App requirements.
- What are the Cash App fees for receiving money?
- What are the main Cash App card benefits?
- Can you use the Cash app card anywhere
- What are the disadvantages of Cash App?
Explaining Cash App and How It Works
As more people accept the convenience that cashlessness offers, mobile payment adoption will sky-rocket in years to come. Cash App is a peer-to-peer money transfer service, a leading digital wallet that provides unique functions compared to its competitors. These include cash boosts, investing in stocks, and buying/selling cryptocurrencies.
In short, Cash App is an electronic payment service that lets its users send and receive money via their smartphone. Their Cash App account functions similarly to an online bank one. It also provides a Cash Card, which works virtually identically to a debit one given out by a top-end credit/debit card company. Meaning, it allows users to make purchases at physical stores by using the funds they have in their Cash App account. When registering for this service, every user can customize their card by selecting a personalized design.
Cash App is available for download from Google Play and the Apple Store, and this piece of dedicated software works in the same way as PayPal, Apple Pay, and other popular e-wallets. To send money using it, all users have to do is:
- Open the app.
- Input the desired sum that they wish to spend.
- Press – Pay.
- Type in the $Cashtag, email, or phone number of the person you are sending your funds to.
- Enter the reason for the transfer.
- Press – Pay.
$Cashtag is a unique username for every Cash App account that can only get changed twice. There are different limits regarding the sums that unverified users can send and receive compared to those who have submitted their legal name and the last four digits of the social security number.
Cash App is currently available only in the UK and US. In 2021, the service opened up to teenagers aged 13 to 17, whose accounts have to get authorized by a parent/guardian and who do not have access to the software’s stock trading and crypto features.
Pros and Cons of Using Cash App
As with any online payment method, Cash App has drawbacks and benefits. Thus, the main Cash App pros and cons are:
Positives of Using Cash App
- Optional Debit Card – We already discussed the Cash Card. It is a physical card issued by Sutton Bank that allows users to withdraw their Cash App account funds and transact with them at retail outlets. The Cash Card does not get connected to a user’s bank account, only to their Cash App one.
- Cash Boosts – These are discounts available at specific vendors. Nevertheless, only one boost is on-hand at a time. However, users can swap these as often as they please.
- Referral Bonuses – Like most digital services these days, Cash App also supplies affiliate commissions for those that get others to sign-up and start using this software.
- Free ATM Withdrawals – Only if you have set up a direct deposit.
- Investment Opportunities – Anyone can purchase stocks with funds available in their Cash App account. That means that this smartphone application is not only a digital wallet. It is also a trading app.
- Crypto Compatible – Cryptocurrencies are all the rage right now, and Square, Inc does not fall behind trends, as they made it possible for users to exchange their fiat money into digital coins via dedicated features. Though, the company does charge a fee for each such transaction.
Negatives of Using Cash App
· Spending/Withdrawal Limits – The most anyone can transfer from their Cash Card is $10,000 per week and $25,000 per month. Moreover, the ATM withdrawal or store transaction maximum limit is $1,000 per week, which is very limiting.
· Not FDIC-insured – The chief difference between keeping your money in a bank and a Cash App account is that the latter has no FDIC insurance. Hence, no federal entity guarantees the safety of user funds. So, if the service goes under, users can lose their money.
· Not Yet International – We touched upon this above. At the moment, Cash App cannot get used by people not residing in the US or UK.
Places and Online Stores That Accept Cash App
Those that are wondering – What can I buy with the Cash App? The answer is pretty much anything. Since this is one of the fastest expanding money transfer services, its adoption is rapidly increasing. Unfortunately, as expected, the list of choices where one can use his Cash Card/App is not as robust as the one available to MasterCard/Visa shoppers yet. Still, the places people can use Cash App include:
· Restaurants – Yes, many eateries and some higher-end dining establishments allow Cash App Cards. Those that do should feature the Cash Card logo on their doors/glass displays. Famous eat and drink brands that have this option include McDonald’s, Starbucks, IHOP, and others.
· Supermarkets – Multiple massive supermarket chains like Walmart now accept Cash Cards.
· Internet Casinos – Online gambling with Cash App is a possibility. Hundreds of interactive gaming platforms today feature this transaction method, and some even offer exclusive perks to those that choose to use it to fuel their betting activities.
· Retail Stores – From clothing to electronic ones, Cash Card payments are a thing in thousands of brick-and-mortar shops. For example, Nike is a brand that endorses Cash App.
· Airlines – Alternative Airlines and other air travel companies have no issue allowing Cash App payments.
Even though the Cash Card is a significant selling point of the Cash App service, the ability to make peer-to-peer transfers online remains the principal reason why people opt to use this payment method. In 2020, the value of digital transactions landed on the $5.2 billion mark, and projections are that this figure will reach $7,8 billion in 2022.
Therefore, there is little chance that something can stop smartphone money transfer solutions from growing in popularity. Per our analysis above, Cash App has multiple benefits that should help it maintain its position as one of the sector’s most significant players for years to come.
About the Author
Shelly Schiff has been working in the gambling industry since 2009, mainly on the digital side of things, employed by Safest Betting Sites. However, Shelly has provided content for many other top interactive gaming websites over her eleven-year career. She knows all there is to know about slots and has in-depth knowledge of the most popular table games. Her golden retriever Garry occupies most of her leisure time. Though, when she can, she loves reading Jim Thompson-like crime novels.