Block Inc. appears positioned to create more connections between its various offerings with a new feature that allows users to automatically invest spare currency from payment card debit purchases in the exchange or bitcoin.
Square’s parent company, which also hosts the Cash App mobile wallet, said Wednesday that Cash Card users could round up the amount of any purchase and opt to have the balance invested in a preferred stock or bitcoin. SQ Block,
sees this move as an attempt to make investing more accessible to its users.
“For new investors, getting started can seem daunting and complicated,” Ryan Budd, Cash App’s head of financial services, told MarketWatch in an email. “At Cash App, we strive to make our financial products easy to use and accessible to everyone.”
Various other services, including Acorns, have also tried to facilitate the use of the alternative currency for investments.
While the Cash app started out as a platform for users looking to send money to friends, it has evolved into a broader personal finance hub. The Cash Card debit card is linked to a user’s account and enables the purchase of items in-store or online. The Cash app also has a stock trading platform where people can buy fractional stocks or bitcoins through an interface that Block says is appealing to everyday people, in part because of the focus on corporate logos rather than stock symbols.
Block saw more than 15 million monthly active users of its Cash Card product in March. Additionally, four million accounts traded or held shares on the Cash App platform that month.
The summary announcement suggests that while there is likely to be some overlap between users of these two services, the company sees the opportunity to create new ties between them.
“We’re thrilled when our products can work together in this way to deliver great value and convenience to our customers,” Budd told MarketWatch. He noted that the roundup feature will also be compatible with the Cash App Boost program, which allows users to choose from a rotating range of rewards, such as 10% off a purchase at Domino’s Pizza Inc. DPZ,
More generally, Block has sought to realize synergies between different elements of its business, particularly for loyalty programs and buy now, pay later.