Cash App opens up to Apple Pay and Google Pay for the first time

In a bold move to enhance its peer-to-peer payment capabilities, Cash App has launched a new feature called Pools, allowing users to easily manage group payments. This marks the first significant product introduction from the Block-owned platform in nearly two years. Owen Jennings, Block's head of business, highlighted that Pools represents Cash App's entry into out-of-network payments, enabling users to accept contributions from Apple Pay and Google Pay users who do not have Cash App accounts. With this feature, individuals can create shared balances for various group expenses, such as splitting a dinner bill or funding a group trip. Users can invite friends to contribute through a simple link, facilitating participation even from those outside the Cash App ecosystem. This strategic launch is crucial as Cash App seeks to regain its competitive edge against Venmo, which has seen substantial growth under PayPal's leadership. Recent PayPal reports revealed Venmo's revenue surged over 20% year-on-year, the highest growth rate since early 2023, driven by increased use of its debit cards and online payment features. The introduction of Pools signifies a major shift for Block, especially after disappointing first-quarter results that fell short of revenue expectations. Jennings emphasized the necessity of refocusing on Cash App’s growth, stating, "Money is fundamentally social in nature. We want Cash App to be the financial operating system for the next generation." This new feature aims not only to enhance user experience but also to foster a more social and accessible platform, aligning with Cash App’s broader growth strategy. Jennings pointed out that by enabling contributions from non-users, the company hopes to convert them into active participants in the Cash App ecosystem. "This product is fundamentally geared at network expansion and improving the virality of our peer-to-peer products," he added. The rapid development of Pools is indicative of a cultural shift at Block, driven by what Jennings described as a swift and high-quality development process, partially facilitated by internal AI tools. He noted the industry-wide trend towards faster development cycles, reflecting a decreasing marginal cost of producing quality software. CEO Jack Dorsey has reiterated the importance of returning Cash App to its core strengths, acknowledging the need for renewed focus on its peer-to-peer functionalities. While Cash App continues to diversify with banking and lending services, such as its FDIC-approved Borrow program, Dorsey underscored that the platform's success hinges on enhancing peer-to-peer engagement. Pools is designed primarily for organic user growth rather than immediate revenue generation. Jennings clarified, "We're not looking at this from a profit maximization perspective. This is very geared at network expansion and getting back to a place where actives are growing at a healthy clip." Equipped with features like progress tracking and seamless integration with Cash App's banking tools, Pools allows organizers to set fundraising targets and share contribution links. Currently, the feature is available to a select group of users, with plans for a wider rollout in the upcoming months. This launch represents the beginning of a new chapter for Cash App, aimed at making money management feel more collaborative and interactive.