Cash App’s Approach to Expanding Financial Access and Inclusion

The relationship between finance and technology is constantly evolving, creating more opportunities to expand access to financial services than ever before. Financial technology companies have been at the center of that progress. But for many Americans – especially for the nearly 25 million unbanked and underbanked households – the financial system still falls short, limiting access to basic financial services and opportunities, and contributing to deep structural inequality.

To expand access and make the financial system more inclusive, we have to better recognize its failures and the root causes behind them. In a recent white paper, Expanding Access and Financial Inclusion, Cash App examined the issue of financial access and inclusion to better illustrate the challenges our customers face.

Economic Barriers and Disparities

Significant disparities in access to financial services persist across age, income, race, and ethnicity, despite legislation and regulatory attempts to eliminate those disparities. This has resulted in an economic system that works for some but not for all — where there is a high degree of economic segregation and a growing gap between those with and those without. For many Americans, the financial system limits access and inclusion to basic financial products, contributing to deep structural inequality.

Five significant drivers of this inequality include:

1. Economic segregation
2. Money moving too slowly
3. Barriers to credit access
4. Limited wealth-building opportunities
5. Lack of access to financial knowledge

Cash App helps promote greater financial inclusion and economic access

Cash App’s mission is to redefine the world’s relationship with money by making it more relatable, instantly available, and universally accessible. Cash App is designed to serve a wide range of individuals, including those who are not typical beneficiaries of the current financial system, and focuses on creating solutions that reduce the impact of financial inequities. Cash App also provides features that look to improve access to core money management tools and enable better spending, saving, borrowing, and investing. The breadth and accessibility of our products have appealed to a broad demographic mix of customers who seek more accessible financial tools. Cash App’s solutions are designed to support inclusion and access.

For example:

• Since Cash App launched free overdraft coverage for eligible customers in December 2023, it has covered more than 108 million transactions for 1.6 million accounts, saving customers up to an estimated $380 million in traditional overdraft fees.
• Since its launch, Cash App Offers have saved more than 10 million customers nearly $300 million.
• When customers start using Cash App, they often experience many financial “firsts” on the platform. For example, 19% of self-reported Cash App customers said they used a debit card for the first time with Cash App, and 20% said they stored and saved money for the first time with Cash App.
• Customers who also have a Cash App Card currently earn an annual percentage yield (APY) of 1.5%, and customers who bring in $300+ in direct deposits each month currently earn a 4.5% APY, which is 10x the current national average.
• The majority of Cash App customers find the platform trustworthy and three in five customers find Cash App empowering (vs. 49% for traditional banks).

There are far too many barriers to access and inclusion in the financial system. Cash App is committed to helping its customers overcome those barriers and working to ensure a future where everyone can prosper.