A recent report shows that more Americans are putting more cash into Cash App, using them as bank accounts rather than opening bank accounts as often has been the case. In Q3 2022, $52 billion worth of paychecks flew to Cash App, a 19 percent increase, a positive sign that the Bitcoin supporting application could last longer.
With the advantages of traditional banking and its years of existence, it seems they are losing footing, giving way to CashApp that’s dominating citizen preference.
CashApp is simply a peer-to-peer app that allows users to send money to each other, a d it provides the benefits of the traditional bank. Things like transferring and receiving funds, issuing debit and credit cards, and an account number with a friendly app user interface.
The Cash card that’s issued is free, Available on request, and runs on the Visa network. Yet unlike the standard financial establishment, CashApp allows users to invest both in company stocks and cryptocurrency. The app also allows anonymous interactions with a monthly limit of $1000. The only way to increase the limit is through KYC verification.
One reason why CashApp is rising in the ranks is the ability to pay for real-world items outside the Square network. The Square network is a product of Square Inc which was created by Jack Dorsey, the Twitter fellow, and Jim McKelvey in 2009.
In December 2021 Square changed its name to Block Inc mostly to accommodate the growth they were experiencing, and this expansion involves partnerships with reputable establishments like Savage x Fenty, Tommy Hilfiger, JD Sports, and many more.
Another reason for CashApp’s preference is the relative anonymity, and the opportunity to invest in Bitcoin for free. Yet their anonymity seems to have a dark side to it. On the 3rd of November 2022, Forbes released a statement citing CashApp as the go-to choice for members of the underground world.
Undercover agents and members of the child exploitation unit have stated that the anonymity of the CashApp, combined with its real-world application has made it the top choice for criminals. Between 2016 to last year, CashApp boosted billions in gross profit, and 480,000 sex ads, as opposed to Velma’s 260,000 ads and PayPal.
With more than 80 million users and around 1.4 billion dollars in profit for the beginning of 2022 alone, it seems the traditional financial establishment would require a lot of innovations to get back their clients.
