Difference between revisions of "Cash App"

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Cash App has been used by numerous individuals to engage in criminal activities. Though other mobile payment apps are also used for such activities, statistics collected after analyzing reviews of these apps have determined that most cases of fraud are tied to Cash App.<ref name="laundering" /> Means that criminals use to commit fraud on Cash App vary, but one common technique involves attempting to sell products that do not exist.  
 
Cash App has been used by numerous individuals to engage in criminal activities. Though other mobile payment apps are also used for such activities, statistics collected after analyzing reviews of these apps have determined that most cases of fraud are tied to Cash App.<ref name="laundering" /> Means that criminals use to commit fraud on Cash App vary, but one common technique involves attempting to sell products that do not exist.  
  
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====Laundering====
 
Moreover, the use of mobile payments systems like Cash App to launder money has increased dramatically during the COVID-19 pandemic.<ref name="laundering" /> After illegally obtaining funds dedicated toward COVID-19 relief, criminals are laundering this money through Cash App’s P2P payment service. These criminals attempt to spread the money across multiple accounts in order to hide the money’s origin.  
 
Moreover, the use of mobile payments systems like Cash App to launder money has increased dramatically during the COVID-19 pandemic.<ref name="laundering" /> After illegally obtaining funds dedicated toward COVID-19 relief, criminals are laundering this money through Cash App’s P2P payment service. These criminals attempt to spread the money across multiple accounts in order to hide the money’s origin.  
 
   
 
   
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===Third-party data sharing===  
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===Third-party data sharing===
  
 
==See Also==
 
==See Also==

Revision as of 23:46, 9 February 2022

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Cash App, a subsidiary of Block, Inc. (formerly known as Square, Inc.), is a mobile app launched in 2013 as a peer-to-peer (P2P) payments service.[1] Since its inception, Cash App has expanded to provide banking and brokerage services.[2] The app can be downloaded for free through the Google Play Store and App Store on the Android and iOS mobile operating systems, respectively.[3] Though the app remains an incredibly popular platform to simply finances, concerns regarding its use in illicit activity and the app’s data policy remain.[3][4]

History

App development

When it initially launched, Cash App solely served as a P2P payment service.[3] In 2017, the Cash Card, which functions as a Visa debit card, was released by Cash App.[5] In the same year, Cash App also introduced a new service that allowed Bitcoin to be traded.[1] Cash App additionally developed the ability to trade stocks in late 2019.

Growth and giveaways

Due to competitive pressures arising from many other companies existing in the market for mobile payments, Cash App has taken a unique measure to expand its user base. Cash App engages with current and prospective users by conducting cash giveaways.[6] Through a program created in late 2017 called “Cash App Friday,” Cash App gives random users hundreds of dollars every Friday. In fact, Cash App has partnered with numerous hip-hop artists who take part in these giveaways: Cardi B and Megan Thee Stallion each worked with Cash App to give 500 dollars to 2,000 different individuals in 2019.

In addition to Cash App itself giving away money, the app has made its way into the 450 billion dollar charity industry.[6] Charitable individuals hoping to help those struggling with financial hardships have found directly donating to people through Cash App to be more effective than donating to non-profit organizations since a direct giveaway more urgently reaches people. Donating through online services like Cash App is growing nine percent every year.

With such techniques being deployed to gain more users, Cash App has grown its number of active users from merely 7 million in 2017 to over 70 million in late 2021.[7][6] In addition, the app has generated over 1.8 billion in gross profit from Q4 of 2020 to Q3 of 2021.

App features

$Cashtag

Upon creating a Cash App account, users select a unique identifier, which is referred to as a “$Cashtag.”[8] Once a $Cashtag is claimed by a user, a shareable URL that can be used to receive money is created. A $Cashtag must be between one and 20 characters, and it can only be changed twice.[9]

P2P payments

The first service Cash App supported upon its launch was P2P payments, which allows individuals to exchange money with friends, family, and businesses.[1][3] To take part in P2P payments, Cash App users need to link a debit or credit card from American Express, Discover, MasterCard, or Visa.[10] If a user chooses to use a credit card to send money, they will need to pay a fee of three percent of the payment.[11] In addition to linking a debit or credit card, users can link a prepaid card though deposits cannot be made to these cards.[10]

When sending money over Cash App, an individual must provide the phone number, email address, or $Cashtag of their intended recipient.[12] Receivers do not need to take any action; however, if they wish to examine the details of a particular payment, they can view their activity feed on Cash App.[13] Before providing additional information to verify their identity, a user can only send and receive 1,000 dollars over a 30-day period.[11] Once a user verifies their identity, this limit is increased.

It can take one-to-three business days to deposit money into a bank account from Cash App.[3][14] However, instant deposits can be made if a fee of 1.5 percent of the deposit is paid.

Prior to 2022, Cash App had to file a 1099-k form to the IRS for only those who took part in over 200 commercial transactions that resulted in over 20,000 of gross income.[15][16][17] Beginning in 2022, Cash App must file a 109-k form to the IRS for anyone who receives over 600 dollars in gross income through commercial means.

Cash Card

The Cash Card is a Visa debit card offered by Cash App and issued by Sutton Bank that is linked to an individual’s Cash App account balance but not any personal banking account.[5][11] It can be used to make both offline and online purchases.[18] Additionally, the Cash Card has spending and withdrawal limits.[11] Individuals can spend at most 7,000 dollars per transaction, 7,000 dollars per day, 10,000 dollars per week, and 25,000 dollars per 30-day period.[11][19]

Direct Deposit

Cash App users also have the option to set up direct deposit.[20] Paychecks and tax returns are among the items that can be directly deposited into an individual’s Cash App Balance. As with most services provided by Cash App, their direct deposit comes with limits: at most 25,000 dollars can be received per direct deposit and at most 50,000 can be received per day.

Investing

Cash App provides a service that allows users to invest in stocks.[21] With just one dollar, users are able to invest. Currently, Cash App provides access to over 1,600 publicly traded stocks and ETFs.[22] Cash App additionally allows users to buy and sell Bitcoin.[23]

Competitors

PayPal

Venmo

Zelle

Robinhood

Ethical concerns

Fraud

Turn this in multiple sections: look at bottom Cash App has been used by numerous individuals to engage in criminal activities. Though other mobile payment apps are also used for such activities, statistics collected after analyzing reviews of these apps have determined that most cases of fraud are tied to Cash App.[4] Means that criminals use to commit fraud on Cash App vary, but one common technique involves attempting to sell products that do not exist.

Laundering

Moreover, the use of mobile payments systems like Cash App to launder money has increased dramatically during the COVID-19 pandemic.[4] After illegally obtaining funds dedicated toward COVID-19 relief, criminals are laundering this money through Cash App’s P2P payment service. These criminals attempt to spread the money across multiple accounts in order to hide the money’s origin.

Third-party data sharing

See Also

References

  1. ↑ 1.0 1.1 1.2 Hale, K. (2020, September 22). Hip-hop's role in Square's $40 billion cash app business success. Forbes. Retrieved January 24, 2022, from https://www.forbes.com/sites/korihale/2020/09/22/hip-hops-role-in-squares-40-billion-cash-app-business-success/
  2. ↑ Cash App. (n.d.). The easiest way to send, spend, bank, and invest. Cash App. Retrieved January 25, 2022, from https://cash.app
  3. ↑ 3.0 3.1 3.2 3.3 3.4 Graham, J. (2020, March 26). PayPal, Venmo, Apple Pay, Google and Facebook: Rating the Mobile Payment Apps. USA Today. Retrieved January 24, 2022, from https://www.usatoday.com/story/tech/2020/03/25/rating-paypal-venmo-apple-cash-facebook-google-zelle/5005537002/
  4. ↑ 4.0 4.1 4.2 Zamost, S., Tausche, K., & Hernandez, K. (2020, November 18). Criminals launder coronavirus relief money, exploit victims through popular apps. CNBC. Retrieved January 25, 2022, from https://www.cnbc.com/2020/11/18/criminals-launder-coronavirus-relief-money-exploit-victims-through-popular-apps.html
  5. ↑ 5.0 5.1 Salinas, S. (2017, November 16). Square cash users can now withdraw money from any ATM with their cash cards. CNBC. Retrieved January 24, 2022, from https://www.cnbc.com/2017/11/16/square-cash-atm-withdrawal-enabled-for-cash-app-users.html
  6. ↑ 6.0 6.1 6.2 Hale, K. (2020, December 18). Hip-hop helps cash app disrupt the $450 billion charity space. Forbes. Retrieved January 25, 2022, from https://www.forbes.com/sites/korihale/2020/12/17/hip-hop-helps-cash-app-disrupt-the-450-billion-charity-space/?sh=74abe9ef6844
  7. ↑ Levy, A. (2021, September 20). Don't look now: Square's cash app is almost as big as Venmo. Nasdaq. Retrieved January 24, 2022, from https://www.nasdaq.com/articles/dont-look-now%3A-squares-cash-app-is-almost-as-big-as-venmo-2021-09-20
  8. ↑ Cash App. (n.d.). What is a $Cashtag?. Cash App. Retrieved January 25, 2022, from https://cash.app/help/us/en-us/3123-cashtags
  9. ↑ Cash App. (n.d.). Change your $Cashtag. Cash App. Retrieved January 25, 2022, from https://cash.app/help/us/en-us/3132-cashtags
  10. ↑ 10.0 10.1 Cash App. (n.d.). Supported Cards with Cash App. Cash App. Retrieved January 25, 2022, from https://cash.app/help/us/en-us/5588-supported-cards
  11. ↑ 11.0 11.1 11.2 11.3 11.4 Bessette, C. (2021, February 26). Cash App Money Transfer: What It Is, How to Use It. NerdWallet. Retrieved January 25, 2022, from https://www.nerdwallet.com/article/banking/cash-app-review
  12. ↑ Cash App. (n.d.). Sending a Payment. Cash App. Retrieved January 25, 2022, from https://cash.app/help/us/en-us/1105-sending-a-payment
  13. ↑ Cash App. (n.d.). Receiving a Payment. Cash App. Retrieved January 25, 2022, from https://cash.app/help/us/en-us/1111-receiving-a-payment
  14. ↑ Cash App. (n.d.). Cash Out Speed Options. Cash App. Retrieved January 25, 2022, from https://cash.app/help/us/en-us/3073-cash-out-speed-options
  15. ↑ Fitzsimons, T. (2022, January 19). Venmo, PayPal and Zelle must report $600+ in transactions to IRS. NBCNews.com. Retrieved January 26, 2022, from https://www.nbcnews.com/news/venmo-paypal-zelle-must-report-600-transactions-irs-rcna11260
  16. ↑ Cash App. (n.d.). Tax Reporting with Cash For Business. Cash App. Retrieved January 25, 2022, from https://cash.app/help/us/en-us/5641-tax-reporting-with-cash-for-business
  17. ↑ Square. (n.d.). Square Tax Reporting and Form 1099-K Overview. Square. Retrieved January 25, 2022, from https://squareup.com/help/us/en/article/5048-1099-k-overview
  18. ↑ Cash App. (n.d.). Order Cash Card. Cash App. Retrieved January 25, 2022, from https://cash.app/help/us/en-us/3080-cash-card-get-started
  19. ↑ Cash App. (n.d.). Card Sutton Bank Terms of Service Card. Cash App. Retrieved January 25, 2022, from https://cash.app/legal/us/en-us/card-agreement
  20. ↑ Cash App. (n.d.). Direct Deposit. Cash App. Retrieved January 25, 2022, from https://cash.app/help/us/en-us/1113-direct-deposit
  21. ↑ Cash App. (n.d.). Investing. Cash App. Retrieved January 25, 2022, from https://cash.app/help/us/en-us/5000-investing
  22. ↑ Cash App. (n.d.). Supported Stocks. Cash App. Retrieved January 25, 2022, from https://cash.app/help/us/en-us/50131-supported-stocks
  23. ↑ Cash App. (n.d.). My First Bitcoin and the Legend of Satoshi Nakamoto. Cash App. Retrieved January 25, 2022, from https://cash.app/bitcoin
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