With so many great features when it comes to receiving, sending, or requesting money, be it online, many do assume that Cash App is a bank. But is this really true, is Cash App a bank? Read on to find out.
Formerly Square Cash, Cash App is a hassle-free peer-to-peer payment system by Square Inc. It makes it possible for Cash App users with valid accounts to send, receive, or request money online.
Even better, it makes it easy for their users to access their money online. How, well by allowing users to link their Cash App accounts to their existing bank accounts.
Users are also given a special Cash App Card(s) upon request that can be used to make purchases online and earn rewards or loyalty points. With all these great tools and features in place combined with others not mentioned like the ability to set up direct deposits, many view Cash App as a bank.
But is it really, is Cash App a bank?
That’s exactly what this post seeks to clarify.
What Is Cash App?
Understanding what Cash App helps in answering whether or not it is a bank. That said, Cash App is basically a payment system that makes it possible for friends, loved ones, and family members residing in the US or the UK to send or receive money online with ease.
To use it, one will need to first be a resident in either the US or the UK. Furthermore, one will need to create a Cash App account, and the person you are sending money to or receiving money from should also have a valid cash App account.
To make the process of sending or receiving money online private or make anonymous online purchases simple and hassle-free, they have in place a number of great privacy features.
For instance, when you sign up for an account, you’ll receive a unique username ($Cashtag) that’ll help give you much-needed privacy when making a purchase online.
What Can You Do With Your Cash App Account?
With Cash App, you have limited possibilities when it comes to what you can do online transaction-wise. Whether you have a personal Cash App account or a business Cash App account, you can be able to send, request, or receive money online hassle-free.
Personal Cash App account holders have the option of using a linked debit card when shopping online to make purchases. Furthermore, they can opt to visit a nearby ATM with their Cash App debit card and access money from their account.
Is Cash App A Bank?
Given its bank-like features and tools combined with the fact that it allows one or its users to not only send, receive and request money online easily but also make payments or purchases, it is very easy for one to think that Cash App is a bank.
In truth, Cash App, despite all the great features and tools they have in place that make it easy for you to access and use your money online, is not a bank. They still lack certain features to qualify them as a bank.
Furthermore, they are yet to meet certain regulations that govern how banks work.
- For example, Cash App is not FDIC insured.
In other words, if something were to happen to your money in your Cash App account let’s say your Cash App account falls prey to scammers online they are not liable to pay you back.
While Cash App is not a bank, it does feel like it to a number of its users in both the UK and the US thanks to the number of bank-like features and tools that they have in place to make using their app hassle-free.
While it is not clear whether Cash App will apply to become a bank any time soon, you can count on them to continue adding bank-like features that’ll make using their services feel just like using your local bank.
One such feature that they recently added is the Cash App Boost that basically allows Cash App users to earn loyalty points and earn rewards every time they use their card to transact businesses online.