Inside Cash App Borrow: Expanding Access Through Responsible Lending

Over a year ago, Block began expanding Cash App Borrow to eligible customers across much of the US following FDIC approval of Square Financial Services to originate and service Borrow loans. Since then, over 15 million Cash App actives have used Borrow to bridge temporary cash flow gaps, cover unexpected expenses, and manage everyday financial needs.

Those customers represent a broad cross-section of Americans across income levels, geographies, and life stages. Cash App Borrow customers span the income spectrum. Among customers who report using the product for personal loans, 19% have household incomes below $30,000, 25% earn between $30,000 and $70,000, and a majority (56%) report household incomes above $70,000. Together, these findings reinforce that the need for short-term liquidity is not confined to any single income bracket.

A Different Approach to Underwriting

Borrow provides eligible customers with access to small-dollar loans directly within Cash App, offering a simple, transparent and fast way to access funds when they need them.

Behind our ability to offer eligibility is Block's unique approach to underwriting. Traditional credit models rely heavily on credit scores and credit history. While those tools play an important role in the financial system, they don't always capture a customer's current financial behavior or ability to repay. Rather than relying on traditional credit scores, we consider signals from a customer's activity on Cash App when determining eligibility and make those factors transparent through Cash App Score, an in-app view that helps customers understand the behaviors that influence their Borrow eligibility.

By incorporating a broader view focused on a customer's recent and actual financial behavior, we've been able to expand access while maintaining a responsible approach to lending. Over the past year, we've originated more than $27 billion in loans through Cash App Borrow, helping expand access to credit for customers across the country whose ability may not be fully reflected by traditional underwriting methods and models.

Designed to Expand and Promote Responsible Credit Access

Generally, traditional credit products for small dollar and short term loans present can place consumers in worse economic positions. Borrow was intentionally designed with safeguards to help prevent that outcome.

Unlike revolving credit products, Borrow is designed to be repaid in full rather than carried over time. Each loan has a simple, upfront flat fee, with no rollovers, refinancing, or compounding fees. By keeping Borrow focused on short-term financial needs, the product is designed to help customers avoid the debt cycles that can develop when balances continue to grow.

Customers who miss payments are not eligible for additional Borrow loans until their outstanding balance is repaid. Eligibility is also reassessed before each new Borrow loan, taking into account recent account activity and repayment behavior. Together, these features are designed to help ensure Borrow remains a short-term credit product rather than a source of ongoing debt.

As Borrow has grown, we’ve built targeted controls that use repayment behavior and liquidity signals to help identify when repeat borrowing may indicate financial stress, giving customers a warning and, when appropriate, temporarily pausing additional access to support more responsible borrowing. These safeguards are designed to ensure Borrow remains a tool for addressing temporary financial needs rather than encouraging ongoing indebtedness. In fact, our analysis found that 70% of Cash App Borrow actives have credit scores below 580, and many have limited credit histories, while the product has had historical repayment rates above 97%.

Looking Ahead

One year after expanding Cash App Borrow, the experiences of millions of customers have reinforced something we've long believed: access to credit can be expanded responsibly when lending decisions incorporate a more complete view of a customer's financial behavior. The results show that expanding access and lending responsibly are not competing goals, and that a broader view of financial behavior can help more customers access the financial tools they need. As we continue to learn from our customers, we'll keep refining Borrow to expand access responsibly and meet their evolving needs.

Click here to learn more about Block’s approach to expanding credit access.

DISCLOSURES

*Cash App is a financial services platform, not a bank. Banking services provided by Cash App’s bank partner(s). See cash.app for more details. Overdraft coverage and direct deposit provided by Cash App, a Block, Inc. brand. Peer-to-peer services and Savings are provided by Block, Inc. and not Cash App Investing LLC. Cash App Green benefits provided by Cash App, a Block, Inc. brand. Cash App Afterpay provided by Cash App, a Block, Inc. brand. Afterpay is offered and managed through your Cash App account - no Afterpay account needed. Eligibility is based on several factors and is not guaranteed. Afterpay is not available in all states. Cash App Borrow are loans are issued and serviced by Square Financial Services, Inc., Member FDIC. Loans are not deposits and are not insured by the FDIC. All loans are subject to credit approval.

Borrow eligibility and limits depend on several factors and is not guaranteed. Borrow is not available in Colorado, Iowa or Oregon. Borrow loans issued and serviced by Square Financial Services, Inc. Unless otherwise noted, facts and figures in this blog post are derived from our white paper “The Modern Earner Economy: How Changes in Earning Are Reshaping Financial Services”.

References

1. A transacting active is a Cash App account that has at least one financial transaction using any product or service within Cash App during a specified period. A transacting active for a specific Cash App product has at least one financial transaction using that product during the specified period and is referred to as an active. Examples of transactions include sending or receiving a peer-to-peer payment, transferring money into or out of Cash App, making a purchase using Cash App Card, earning a dividend on a stock investment, and paying back a loan, among others. Certain of these accounts may share an alias identifier with one or more other transacting active accounts. This could represent, among other things, one customer with multiple accounts or multiple customers sharing one alias identifier (for example, families). 

2. Cash App internal data.

3. Cash App Borrow originations from April 2025 - March 2026.