Cash App Introduces Round-Up Investing Feature for Debit Card

Debit card customers looking to grow their investments gained a new, automated option today as Block Inc. (formerly Square Inc.) officially announced a new feature for its popular Cash App. Now, customers with the Cash App Cash Card can opt into Round Ups as a means of growing their investments. When this feature is toggled on, Cash App will round up debit card purchases to the nearest dollar and invest the difference. For example, if a user buys a cup of coffee for $3.55 with their Cash Card, the cardholders would see their spendable balance reduce by $4, with the 45¢ going toward their investments.

Currently, those who elect to participate in the Round Ups feature can choose from a number of investment options. Specifically, they can select an individual stock or ETFs listed by Cash App. Alternatively, Rounds Up funds can also be used to purchase Bitcoin with the app. After a selection is made, cardholders can change the destination of their funds or toggle off Round Ups altogether by tapping the Cash Card tab and then “Round Ups.” This is also where customers can view recent Round Up activity.

One thing that’s not 100% clear is how Cash Card’s signature Boosts will be impacted by Round Ups or vice versa. Instead, the app’s FAQ simply states, “The Round Up will be funded from your balance, and the Boost will be applied by Cash App.” However, since Boosts typically adjust the purchase price on the spot, it stands to reason that the net total is what the ensuing Round Up would ultimately be based on.

On that note, Cash App has also quietly updated its Boosts interface in conjunction with the new feature, allowing users to scroll through current offers on one page rather than swipe through them individually. Some of the current Boosts available include 6% off a Lyft ride, 10% off Crocs, 10% off a Fandango purchase, 10% off at Starbucks, 5% worth of Bitcoin at any restaurant, and many more.

As any FinTech observer can surely tell you, Cash App certainly isn’t the first finance app to integrate a Round Ups feature. In fact, the concept is perhaps more closely associated with the app Acorns, but other platforms including Revolut, One Finance, Robinhood, and many more now offer some version of the feature.

That said, Cash App’s version does seem to be a good fit for the app, although some potential upgrades could be imagined. For example, it might be interesting if the platform allowed cardholders to automatically divert the cashback they earn from Boosts toward their selected investment. Of course, we’ll need to wait and see if such upgrades could be in the cards down the road.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Carbon Credit API Cloverly Joins Visa's FinTech Partner Connect 

Last year, Visa introduced the FinTech Partner Connect program to the United States, with the goal of introducing institutions to vetted startups that could help them expand their product offerings. Now, the latest company to join the program is Cloverly. Founded in 2019, Cloverly is an API for carbon credits, allowing businesses and consumers to help fight climate change. As the company points out, with the Visa partnership, Visa clients...

Prosper Announces $75 Million Growth Capital Financing

A long-admired FinTech has added some new capital to its coffers and it continues to grow after more than 15 years in business. Recently, Prosper Marketplace announced that it had closed a $75 million debt financing round. This capital came from a fund managed by Neuberger Bergman and will be used to help Prosper meet the demand for its loans, credit card, investment products, and more. According to the company,...

Small Business Saturday 2022 Drives Projected $17.9 Billion in Sales

This past weekend saw the kick-off to the holiday shopping season with Black Friday followed by Small Business Saturday. Now in its 13th year, the latter is a promotion meant to raise awareness for small local businesses and encourage consumers to support them. Now, the initial figures from this year's event have arrived. According to American Express (which actually invented the retail holiday in 2010), an estimated $17.9 billion were...