How Does Cash App Make Money

Cash App is a popular peer-to-peer payment app developed by Square, Inc. that allows users to send and receive money instantly. Since its launch in 2013, the app has gained widespread popularity, especially among millennials, due to its ease of use, low fees, and features like the Cash Card and Boost.

But how does Cash App make money?

In this article, we’ll take a closer look at the different revenue streams of Cash App.

How Cash App Makes Money

Here are the different ways in which Cash App makes money.

  1. Transaction Fees

One of the primary ways that Cash App generates revenue is through transaction fees. When users send money to each other, Cash App charges a fee of 3% if the transaction is made using a credit card. If the user has linked their Cash App account to a debit card or bank account, there is no fee for sending money. However, if the user wants to instantly transfer the money to their bank account, they can do so for a fee of 1.5% of the total amount.

  1. Cash Card

Cash App offers a free debit card, called the Cash Card, that allows users to spend their Cash App balance anywhere that accepts Visa. Users can also withdraw cash from ATMs using the Cash Card. When users make purchases with their Cash Card, Cash App earns a small percentage of the transaction fee charged by Visa.

  1. Boost

Boost is a unique feature of Cash App that offers users cashback rewards on their purchases. Cash App partners with different businesses to offer discounts on purchases made with the Cash Card. For example, users may receive a 10% discount when they make a purchase at a particular restaurant. Cash App earns a small percentage of the transaction fee charged by the business for each purchase made with a Boost.

  1. Bitcoin Trading

Cash App allows users to buy and sell Bitcoin directly from the app. Cash App charges a small fee for each Bitcoin transaction, and the app makes a profit from the difference between the buy and sell prices. Cash App also holds some Bitcoin in reserve, and the value of that Bitcoin can increase over time, generating additional revenue for the company.

  1. Subscription Services

Cash App offers several subscription services, including Cash App Plus and Cash App Investing. Cash App Plus is a monthly subscription that provides users with exclusive perks and discounts, such as higher cashback rewards and discounts on ATM fees. Cash App Investing allows users to invest in stocks and ETFs, and Cash App charges a small fee for each trade.

Cash App for Business Services

In addition to the revenue streams mentioned above, Cash App also earns revenue through its Cash App for Business service. This service allows small business owners to accept payments from their customers using the app. Cash App charges a transaction fee of 2.75% for each payment received by a business, and the funds are immediately available in the business’s Cash App balance.

Another way that Cash App makes money is by offering loans to its users through its Cash App Loans service. This service allows users to borrow money directly from Cash App, and the funds are deposited directly into the user’s Cash App account. Cash App charges interest on these loans, which varies depending on the amount borrowed and the repayment period.

Cash App also earns revenue through partnerships with other companies. For example, Cash App has partnered with Square’s other products, such as Square Terminal and Square Online, to offer a complete suite of business solutions to small businesses. Cash App also partners with other companies to offer exclusive discounts and rewards to its users.

It’s worth noting that while Cash App is a profitable app, it’s also faced some scrutiny and criticism over its business practices. For example, the app has been criticized for its lack of customer support, which can make it difficult for users to resolve issues or disputes. Additionally, some users have reported fraudulent activity on their Cash App accounts, which has led to calls for better security measures and fraud prevention.


Cash App is a popular and profitable app that generates revenue from multiple sources, including transaction fees, the Cash Card, Boost, Bitcoin trading, and subscription services. By offering a variety of features and services, Cash App has built a loyal user base and continues to grow in popularity.

In conclusion, Cash App generates revenue through a variety of sources, including transaction fees, the Cash Card, Boost, Bitcoin trading, subscription services, loans, and partnerships. While the app has faced some criticism over its business practices, it remains a popular and profitable platform that continues to innovate and grow.