Block Inc. appears to be positioned to drive more connections between its different offerings with a new feature that allows users to automatically invest spare change from Cash Card debit purchase in the stock market and into bitcoin.
Block, which is home to the Square merchant business as well as the Cash App mobile wallet said Wednesday that Cash Card customers would be able round up any purchase amount and choose to invest the remainder in a preferred stock or Bitcoin. Block views the move as a way to make investing easier for its users.
Ryan Budd, Cash App’s head of financial services, said in an email that for first-time investors, it can be difficult and confusing to get started. “At Cash App, we are focused on making our financial products accessible and easy-to-use for everyone.
A variety of other services, such as Acorns, also make it easy for people to invest their spare money.
The Cash App was initially created to allow users to send money to their friends. However, the app has grown to be a hub for personal finances. The Cash Card debit card can be linked to an account and used for online or in-store purchases.
Block claims that the Cash App has a stock-trading platform where people can purchase fractional shares of equities and bitcoins through an interface that is easy to use. This is partly due to the emphasis on logos of companies rather than ticker symbols.
Block had more than 15,000,000 monthly active users for its Cash Card product in March. Four million accounts also traded or held stock via the Cash App platform during March.
Round-up announcements suggest that there may be overlap between the two services users, but that the company sees an opportunity to create further connections between them.
MarketWatch was told by Budd that he is excited about the possibility of our products being able to work together in this way. The round-up feature is compatible with Cash App Boost, which allows users to choose from a rotating range of rewards such as 15% off a Shake Shack Inc. purchase.
Block is looking for synergies among its various business elements, including loyalty programs, and buy now, pay later.