How Does Cash App Make Money? A Closer Look at the Revenue Model


Cash App, a popular mobile payment application developed by Square, has gained immense popularity for its user-friendly interface, seamless money transfer capabilities, and a range of additional features. While the app itself is free for users, Cash App, like many fintech platforms, has a revenue model that allows it to generate income. In this article, we’ll explore how Cash App makes money and the various strategies that contribute to its financial success.

  1. Transaction Fees

One of the primary sources of revenue for Cash App is transaction fees. While it’s free to send and receive money from friends and family using Cash App, the platform charges fees for specific types of transactions.

  • Business Transactions: Cash App charges a fee to businesses for processing payments. This fee is typically a percentage of the transaction amount, making it an attractive option for small businesses looking for affordable payment processing solutions.
  • Instant Transfers: Users have the option to transfer funds from their Cash App balance to their bank account instantly. For this convenience, Cash App charges a nominal fee, usually a percentage of the total amount.
  • Bitcoin Transactions: Cash App offers the ability to buy, sell, and hold Bitcoin. They make money on Bitcoin transactions by adding a margin to the market price.
  1. Cash Card

Cash App introduced a physical debit card known as the Cash Card. This card is linked to a user’s Cash App account and can be used to make purchases at physical stores or online. Cash App generates revenue through interchange fees paid by merchants when users make purchases with their Cash Card. Additionally, Cash App offers a “Boost” program, where users can get cashback or discounts on specific purchases when using the Cash Card. While these discounts come from merchants, Cash App benefits by attracting more users to its ecosystem.

  1. Bitcoin Trading

Cash App allows users to buy, sell, and hold Bitcoin within the app. They profit by buying Bitcoin at one price and selling it to users at a slightly higher price, essentially functioning as a cryptocurrency exchange. This price difference contributes to Cash App’s revenue.

  1. Investing

Cash App introduced a feature that enables users to invest in stocks and exchange-traded funds (ETFs) with as little as $1. They earn revenue through payment for order flow, a practice in which brokerage firms receive compensation from market makers for routing customer orders to them. This revenue model has become increasingly common in the fintech industry.

  1. Cash App for Business

Cash App offers a business platform for small and medium-sized businesses, providing tools for payment processing and financial management. They earn money through transaction fees, just like with personal accounts. By offering a user-friendly and affordable solution for businesses, Cash App attracts a broader user base and generates additional income.

  1. Cash App Boost

Cash App Boost is a rewards program that offers users discounts and cashback when they make purchases at certain businesses with their Cash Card. While the discounts are provided by the partnering merchants, Cash App may receive a share of the marketing budget or fees paid by the businesses for being featured in the program.


Cash App’s revenue model is based on a combination of transaction fees, interchange fees, cryptocurrency trading, and other value-added services. It strategically leverages its user base and provides additional features to generate income while maintaining its status as a free and user-friendly mobile payment application. This combination of revenue streams has made Cash App a profitable venture for Square, making it a prominent player in the rapidly evolving fintech industry.

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