Most of the coverage of Block (née Square) — which has become somewhat of a sprawling entity — tends to focus on its bitcoin ambitions, performance of the original Square POS business, or how the acquisition of Afterpay (for a heady $29 billion) is turning out.

Something that hasn’t received much attention? How Cash App has quietly ramped up lending to its 47 million monthly active users. Cash App launched small-dollar lending as a beta two years ago.

Since that launch, it appears Cash App has been diligently toiling away, refining its product design, UX, servicing/collections, and, most importantly, its credit policy.

Cash App began testing the product with 1,000 users by offering loans of $20 - $200. Loans were to be repaid within four weeks and carried a flat fee of 5% of principal.

After spending 2020 and 2021 testing and refining the offering, it looks like Cash App began scaling who is eligible to borrow aggressively in December 2021. The holiday period historically drives extremely high demand for small-dollar lenders.

Since December 2021, Cash App has continued to grow its offering, exceeding one million users borrowing funds through the app in June 2022.

Read this full great article by Jason Mikula through the link in the comments below👇

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