The news: Cash App released a slew of updates across its payments ecosystem, per a press release.

• Banking. With the launch of Cash App Green, users can earn banking benefits without direct deposit requirements—by hitting spending or other deposit thresholds. Green rewards include no in-network ATM fees, priority phone support, higher Borrow limits, free overdraft protection, weekly personalized discounts, and up to 3.5% interest on savings balances.
• Credit. Eligible borrowers can qualify for loans up to $500 through Cash App Borrow. Cash App customers can also access Afterpay on the Cash App home screen without a separate login.
• Crypto. Starting later this month, eligible Cash App customers can pay in US dollars after scanning a Lightning QR code and the merchant will receive Bitcoin, enabling swift, affordable payment with their cash balance without having to hold or spend crypto assets. For users who want to spend Bitcoin, a map in the app will highlight nearby Square businesses and other merchants that accept crypto. Users will also be able to convert stablecoins into USD in-app.
• AI. The debut of Moneybot, Cash App’s AI-powered financial assistant, serves consumers who want insights into their financial habits and spending patterns. It can offer suggestions about saving money and cutting costs.

Why this matters: Cash App’s latest features represent Block’s effort to integrate its payment ecosystems into one unit. Rebranding Afterpay embedded Block’s BNPL product in Cash App, and Cash App Neighborhoods brought Square closer to Cash App’s users. 

Our take: Cash App’s continued focus on expanding financial services and tools for unbanked, underbanked, and lower-income consumers also reveals Block’s ambition to own this market, as Venmo homes in on students and educated young professionals. 

Making Afterpay’s BNPL tool more easily accessible to Cash App users helps this demographic navigate economic uncertainty with a tool they may see as less risky than revolving credit. Installment loans have also been a key engine for fintechs over the last few quarters—PayPal’s BNPL volumes surged 20%—giving Cash App a means to get in on a popular growth driver.