Block Expands Cash App Banking as Primary Users Reach 9.4 Million

Block is broadening Cash App’s banking role through investment, credit and savings products as the app’s primary banking user base reaches 9.4 million, a 17% increase from a year earlier.

The product lineup includes trading in stocks, exchange-traded funds (ETFs) and Bitcoin (BTC), along with short-term loans, high-yield savings and customizable debit cards. Block is seeking to increase customer activity and retention, including among people who use Cash App mainly for occasional transfers rather than regular banking, investing and spending.

Loan originations through Cash App rose 59% year over year in the second quarter. So far this year, Cash App has generated nearly $4 billion in gross profit.

Block filed an application in September with the Office of the Comptroller of the Currency (OCC) to establish Builders Bank & Trust NA. The filing is part of the company’s effort to expand Cash App’s role in financial services.

Compliance pressure remains a concern. In August, Block doubled its reserve for a potential settlement tied to an ongoing U.S. Department of Justice investigation to $526 million.