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Cash App users can now pool money for group payments — even with non-users
Cash App has introduced a new feature called 'Pools' that allows users to pool money for shared expenses with friends or family, including contributions from non-users via Apple Pay and Google Pay. This feature aims to enhance user engagement and competitiveness against Venmo and PayPal, addressing recent usage challenges that have impacted the app's financial performance.
Key points
- Feature Launch: Cash App's 'Pools' allows users to pool money for expenses.
- Functionality: Users can set a target amount and invite contributors through their $cashtag or a text link.
- Inclusion of Non-Users: Non-Cash App users can contribute via Apple Pay and Google Pay.
- Purpose: Aimed at shared expenses like groceries, dining, and group gifts.
- Market Competition: The new feature targets competition with Venmo and PayPal.
- Growth Need: Cash App has been facing underwhelming user engagement, affecting its revenue.
Why it matters
- Rise of digital payment platforms post-pandemic, highlighting the need for innovative features.
- Growing use of mobile payment solutions like Venmo and PayPal, which have established money pooling.
- Cash App's recent financial struggles indicate a trend of consumer expectations outpacing service growth in fintech.
The introduction of 'Pools' represents an essential step for Cash App to enhance user participation and remain competitive in the digital payment sector while addressing its recent growth challenges.