Nowadays it is hard to come across businesses that encourage transactions with cash. After years of being a prominent way to buy products and even pay for services, mobile finance apps like Cash App have become fully integrated into the Gen Z lifestyle.
During a recent interview with CNBC‘s Jim Cramer, CFO Amrita Ahuja emphasized the success of Block’s Cash App payment services among younger consumers. Ahuja highlighted the widespread popularity of the Cash App card, a Visa debit card offered free of charge, particularly among the youth demographic. She elaborated on Cash App’s ability to connect with younger users, attributing this success to a unique families program that enables adults to sponsor accounts for teenagers.
Ahuja underscored the distinctive nature of the families offering, characterizing it as catering to an underserved population. She expressed enthusiasm about the prospect of growing alongside this demographic, emphasizing the opportunity to engage not only with teenagers but also with their parents, extended family members, and broader community.
Formerly recognized as Square, Block operates as a financial services entity specializing in payment and point-of-sale products. Cash App, which significantly contributed to the company’s revenue in the last quarter, boasts an array of payment services and additionally facilitates stock and bitcoin transactions.
In addition to Cash App, Block owns Afterpay, a leading buy now, pay later company. Ahuja discussed the potential integration of Afterpay services into Cash App, viewing it as a remarkable opportunity to integrate commerce functionalities within the app.
Ahuja elaborated on the widespread adoption of Afterpay, noting that over 20 million consumers utilize the service annually, with usage frequency on the rise. She highlighted a significant trend among younger customers who exhibit a lack of trust in traditional credit card systems and express a preference for alternatives that mitigate the risk of falling into negative debt spirals.
Ahuja’s remarks underscore Block’s success in capturing the attention and loyalty of younger consumers through its Cash App services, fueled by innovative offerings like the families program. Moreover, the company’s strategic acquisitions, such as Afterpay, present promising opportunities for further expansion and integration within the Cash App ecosystem.
Noumaan Faiz, (he/him) is a journalist and entertainer from Hayward, CA who covers culture and entertainment.
Edited by Nykeya Woods