Cash App is a peer-to-peer (P2P) payment service with additional features included. You can use the app to pay businesses, transfer funds to other people, or buy stocks and bitcoin. Cash App is an alternative to popular payment methods such as Venmo, making it quick and easy to pay somebody without using physical cash or checks.
We will review how the service works, how to complete essential tasks, and how it compares with Venmo.
What Is Cash App?
Cash App is a social payment app that enables you to send money, invest in stocks, and buy bitcoin with your mobile device. The offering comes from Square Inc., which is led by Twitter’s Jack Dorsey.
While peer-to-peer payments are free, Cash App makes money by offering additional services at extra cost. You may pay fees for instant transfers to your debit card, bitcoin purchases, and ATM withdrawals using a Cash Card linked to your Cash App. Businesses that accept payments via Cash App also generate revenue for the service.
How to Use Cash App
How to Sign Up for Cash App
To get started, add Cash App to your mobile device and enter the information required to open an account. You can provide a phone number or email address as contact information, and you’ll need to verify that contact method. Once confirmed, you can link your debit card and bank account to Cash App and continue providing personal information.
Cash App allows you to select a $Cashtag during the setup process, which is a unique name that identifies your account. Sharing your $Cashtag with others makes it easy for them to remember where to send money.
How to Send Money With Cash App
When you’re ready to make a payment, open Cash App, enter the amount you want to send, and click Pay. Provide the recipient’s email address, phone number, or $Cashtag, enter what the payment is for, and click Pay again. The process is fast and easy, making this an excellent tool for splitting bills or sending money to friends and family.
How to Withdraw Money From Cash App
When you want to get money out of Cash App, you can send funds to your bank account or to a linked debit card. Transfers to your bank account are free and take one to three business days. If you need money faster, you can request an instant transfer to your debit card for an additional fee of 1.5% of the amount you transfer plus 25 cents.
Buying Bitcoin on Cash App
You also can purchase bitcoin with Cash App. Be sure you have funds available, then tap the investing icon at the bottom of the Cash App screen. Choose the option for bitcoin, select Buy, and enter the amount you want to purchase. You also will need to verify your identity, and you may need to provide additional information before bitcoin purchases are enabled.
Bitcoin markets can fluctuate unpredictably, and it’s possible to lose money. Depending on price volatility, Cash App may charge additional fees for bitcoin trades.
Is Cash App Safe?
Con artists recognize that P2P payment apps make it quick and easy to send—and steal—money, and it’s not uncommon for scammers to employ Cash App.
Getting scammed with Cash App can be problematic. Payments from Cash App to another Cash App user are virtually instant, and the app’s support pages emphasize that you cannot cancel those transfers. Because of that, it’s critical to send funds only to people you know and trust.
The most common scams with Cash App follow the following recipe: Somebody promises to give you something after you pay them through Cash App. Ultimately, you get nothing but silence. Examples include:
- Deposit scams (for a pet or an apartment, for example)
- Cash flipping, which sounds too good to be true because it is
- Payment claim scams, which require you to pay money before receiving a payment
- Phishing scams, which attempt to get your Cash App account information
There are several ways to reduce the chances of getting ripped off.
Pause and Research
Pause before sending money or providing information about your Cash App account. Google the details (or even the exact text) of any “opportunity” that comes your way before moving forward.
Don’t Pay in Advance
Cash App suggests never paying in advance. Unless you really trust the person you’re working with, advance payments put you at risk, and recovering your money can be difficult or impossible.
Use Official Support
If you need help with your Cash App account, verify that you’re working with legitimate Cash App representatives. Contact support directly through the app, and be skeptical of any emails, calls, or text messages that claim to be from a Cash App representative.
You can’t hear this too often: If it sounds too good to be true, it probably is. It’s highly unlikely a stranger will give you money for nothing.
Cash App vs. Venmo
Venmo and Cash App both made our list of the best payment apps. While they share several features, Cash App has offerings that make it unique.
|All payments are private||Ability to share payments in news feed|
|Free P2P payments||Free P2P payments|
|Debit card for spending||Debit card for spending|
|Stock purchases available||No stock trading|
A primary difference is the Venmo news feed. If you choose to make transactions public on Venmo, the payment event—along with any comments you add—may be publicly available. That can be a fun feature, but it may be unappealing to privacy-minded people. That said, you can make all your Venmo transactions private by default.
Another difference is the ability to trade stocks with Cash App. That may not matter if your primary goal is to make P2P payments, but it could tip the scales for some people.
Ultimately, both apps generally are well-designed and easy to use. For basic money transfers (like splitting a dinner bill with friends), either app is an excellent choice. They both offer free personal payments, and you also can get a debit card for purchases with online and brick-and-mortar merchants. The deciding factor might be which app your friends and family use most often.