Cash App started as a money transfer platform that was app-based, similar to Venmo. However, in the last year, it has evolved into a financial services platform that allows not only the sending of money or crypto, but also investments and more.
But should you consider using it as your primary investment platform? That's still to be seen - but if you're curious, it doesn't hurt to give it a try.
See how Cash App compares to the best places to invest for free.
- Send and receive money from family and friends
- No fees for receiving cash
- Trade stocks and Bitcoin directly on the app
What Is Cash App?
Cash App is part of Square, Inc. The app allows businesses and individuals to send and receive money using a debit or credit card. Cash App is based in San Francisco, CA. Does Square sound familiar? It's because we also talked about Square as one of the best credit card processing services for small businesses.
Originally introduced in 2013 as Square Cash, the service hasn’t changed much since its introduction.
What Do They Offer?
Cash App allows sending and receiving cash using a credit or debit card. It is available for businesses and individuals. Although, if you plan to use both account types, you’ll want to create an account for each.
Once you receive money, you’ll need to transfer it from Cash App to your bank account. Using a linked bank account or debit card, you can transfer funds in about three days. Instant transfers are available for an additional fee.
After verifying your identity on the app, you’ll be able to send up to $2,500 per week. Without identity verification, you’re limited to $250 per week. Receivers must also verify their identity. For receivers, the limit is $1,000 every 30 days and unlimited after identity verification.
Additionally, you can make direct deposits into your Cash App account.
Money can be sent from Cash App or the cash.app website. Cash App creates a $Cashtag for each user, which helps with filling in contact information when sending money — although you can also use an email address.
You can use credit and debit cards from Visa, Mastercard, American Express, and Discover.
Cash Card and Direct Deposits
If you want to spend cash directly from your Cash App account, you can get a Cash Card, which is a Visa debit card. The Cash Card can also be used to make ATM withdrawals.
A Cash Boost is a discount program available through the Cash Card. By using your Cash Card along with a Cash Boost at participating coffee shops, restaurants, and other merchants, you can receive discounts.
Once a Cash Boost is available, you can save it from the app so it is ready to use on your Cash Card.
Why Cash App vs. All the Other Peer-to-Peer Payment Services?
The advantage of Cash App is that it is extremely simple to use and doesn’t even require the receiver to have a Cash App account. Funds go directly to the receiver’s debit card.
Investing In Crypto
Cash App lets you buy and sell bitcoins directly from your Cash App account. You must have funds in your Cash App account to buy bitcoins. Bitcoins you’ve purchased directly in your Cash App can be sold.
If you have an external wallet, you can transfer bitcoins to it. The process takes 30 to 40 minutes. You can also deposit up to $10,000 worth of bitcoins in any seven-day period.
On the Apple App Store, Cash App has a 4.6/5.0 rating with a total of 287.7k ratings. On the Google Play store, it has a 3.8/5.0 rating, with a total of 123.3k ratings. Some features of the app include an activity history and listing of contacts that you’ve entered in, for quicker sending of cash.
Investing In Stocks
Cash App only has limited investing options, but they do allow you to invest in fractional shares - which is a great way to build a portfolio with just a small amount of cash.
Are There Any Fees?
Yes — there is a 3% fee to send cash via a credit card. There is no fee for sending cash using a debit card. Receivers of cash are not charged any fee. Instant deposits incur a fee of 1% to 1.5%.
Receiving payments on a business account will incur a 1.5% fee.
How Do I Open an Account?
You can open an account by visiting their website here.
Is My Money Safe?
While Cash App does use encryption in its app and on the website, there is no FDIC insurance. Cash App also uses fraud detection software.
For additional security, you can take advantage of Cash App’s Security Lock feature, two-factor authentication, and your phone’s Face ID or Touch ID authorization processes.
Is It Worth It?
Given its simplicity and the backing of a reputable brand (Square), Cash App is worth trying. If you have the need to send cash from a credit card to another person or business, Cash App can certainly perform the task without any issues.
Cash App Review
- Commission and Fees
- Ease of Use
- Customer Service
- Tools and Resources
- Investment Options
- Speciality Services
Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.
He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.
He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.