Cash App to Transform Into Full-Service Digital Bank, Expanding Into Stocks, ETFs and Custom Debit Cards

October 30 — According to Bloomberg, Jack Dorsey's fintech company Block has announced it will push its crypto and payments platform Cash App to transform into a full-service digital bank, using products such as stock, ETF and bitcoin trading, short-term loans, high-yield savings and custom debit cards to boost user activity and customer retention.

Cash App currently has 9.4 million users who use it as their primary banking tool, up 17% year over year. However, Cash App still faces stagnant user growth and compliance pressure. Multiple lawsuits have alleged that criminals used the platform to carry out fraud, identity theft, money laundering and other activities, and Block disclosed in August that it had doubled its legal reserve for a potential settlement related to a multi-year U.S. Department of Justice (DOJ) investigation to $526 million. In addition, despite the company's continued rollout of new products, some users still mainly use Cash App for occasional transfers rather than everyday banking, investing and spending services.