Cash App is a peer-to-peer payment method owned by Square, Inc. This is one of the more well-known cash apps available today because of Square’s prominence. The app lets you pay and receive money from another person or business. This type of peer-to-peer payment method is one of the options you have for fast, instant transfers.

What is Cash App?

Cash App, or Square Cash, as it is sometimes called, was designed by Square, a tech company based in San Francisco. The app is designed to be a very easy way to share money between people, whether you are paying for a bill between two parties or you just want to send money to a friend. It has a number of features that help it to be a good overall way to manage money. It helps you avoid having to take cash out to split between friends. The app, which is available through Apple and Android devices, is also very easy to use.

Our Findings Summarized:

Overall, Square’s Cash App is reliable and safe to use with solid fraud protection tools in place. It is also a good option for its competitive pricing and fast transfers.

Pros:

  • Instant transfers are available for immediate use.
  • You do not pay a fee for receiving money and is free to send money if you don’t use a credit card.

Cons:

  • Fees for credit card use on the app can be as high as 3 percent.
  • Merchants have to pay a 2.75 percent fee per swipe, which increases their costs and limits the use of Cash App in stores.

How to Get Started with Cash App

You will need to download the Cash App as a first step. Once you open it, you then need to enter your email address and phone number. There’s a short verification process. Then, you can link your debit card or credit card to it. You’ll also create a Cashtag name, which is how others will recognize you.

How to Send Money with Cash App

Simply hit the pay button on the app to send money to other people. You will need to add the person’s name or Cashtag to the app to locate them. You can also use their phone number. Then, they will receive a message that they’ve received a payment from you. You can link your credit card or debit card to the account to send funds through.

How to Receive Money with Cash App

To receive money, you’ll need to link your debit card or your bank account to the app. Then, hit the cashout button. This allows you to transfer the funds sent to you through the account to your bank account.

How to Make Deposits into Cash App

You can make deposits with Cash App easily. You will need to link your debit card or credit card to do so. Once linked, you can transfer funds right away.

How to Withdraw Money from Cash App

You can use the cashout feature to withdraw funds from your Cash App account and send them to your bank account. Most of the time, instant deposits happen, which means your money gets to your bank account within minutes. Standard deposits take between one and three days.

How Popular is Cash App?

Square’s Cash App is a fast-growing tool. The company doesn’t tell us how many users it has, but it has grown significantly in the last few years. Many people use the service.

Main Features and Benefits of Cash App

Cash App is an app-based tool to allow you to send and receive funds. It offers a simple-to-use app as well as the Cash.me tool to allow for money to change hands. You can also use Siri to send money using your app.

Fees

You can receive money without any fees. However, there is a 1.5 percent deposit fee if you use the instant transfer method. Business transactions also have a 2.75 percent fee paid by the merchant. There is no cost to sending money.

Limits

You can send up to $2,500 per week using Cash App, but you cannot send more than $250 until you verify your identity. You can receive up to $1,000 every 30 days. If you verify your identity, there is no limit to how much you can receive.

Availability

Cash App is available in some countries. You can accept funds into your account traveling internationally, but most often, it is available only in the U.S. and Canada. It also recently launched in the U.K.

Payment Types

With Cash App, you can connect your debit or credit cards. This includes Discover, MasterCard, and Visa. You can also link your bank account to the service.

Speed

Instant deposits are available in your bank account within hours while other deposits can take up to three days. Transfers from your account to others happen instantly.

Fraud Protection & Safety

The company offers a number of different features to keep you safe, including a PIN entry, facial ID, and touch ID for the app. The company does offer fraud protection from unauthorized payments. You have 45 days to report these.

Customer Service

The company is highly responsive to questions and inquiries. Its fraud department works closely with you to verify the information. The process of contacting customer service is also easy, with several links on the app to allow you to call or chat with a representative.

Referral Program

When you refer a friend to Square Cash App, you’ll earn $5 and your friend will as well. You’ll receive a code to use to do this.

Where Cash App Falls Short

There are many good things about Square Cash App. However, it does have high fees associated with credit card use and a fee for instant deposits into your bank account. Also, it requires users to verify their identity in order to offer the lowest fees available. The only other downside is that it isn’t available globally as much as other services.

Cash App versus Other Apps

There are other types of apps like this available to you. Each one offers a few differences that can make it a competitive option.

Cash App vs. Venmo

Venmo is one of the most recognized types of peer-to-peer online banking solutions. It is owned by PayPal, and they work much in the same way. You can link your credit card, debit card, or your bank account directly to the system. Then, you can send money to your Venmo account. Use those funds to pay anyone you want.

Fees: Fees can range widely. Most of the time, it costs $0.25 per transaction for an instant transfer. There can be credit card fees associated with the use of your Venmo account. These can be as high as 3 percent.

Limits: There are limits to your Venmo transfers, which may be as low as $1,000. However, over time, this can be lifted, and you may be able to withdraw or transfer more than this.

Availability: Venmo is used widely available in the U.S. but has limited access in some other countries. The company has over 40 million users as of the end of 2018.

Payment Types: You can use your Venmo for a variety of payment items. This includes from your debit and check card, as well as your credit card. If you have a Venmo balance, such as from other payments, you can use that as well.

Speed: Most often, it takes between one and three days to transfer funds from Venmo. It is possible to pay a fee of $.25 for an instant transfer. This may be available within a matter of hours.

Fraud Protection & Safety: You have up to 60 days to report an unauthorized transfer with your Venmo account. The company covers those if they can be verified.

Referral Program: It’s easy to invite your friends to join Venmo using the app. The referral program may pay you up to $1 per friend you sign up for the program, too.

Cash App vs. Xoom

Xoom is Paypal’s money transfer tool. It allows you to send money from your Paypal account to people around the world. It is designed to be fast and a secure method for transfer.

Fees: There is a fee you pay with each transaction. The fee is dependent on the country you are sending money to and the size of the transfer.

Limits: There are limits on how much you can transfer. This depends on the country but ranges from $10 up to $10,000 in a single transaction.

Availability: Xoom is one of the more versatile methods for transferring funds. It is available in many countries.

Payment Types: You can transfer funds online from your Paypal balance. You can also set up bank-to-bank transfers using the service.

Speed: Payments transfer right away but can take one to three days to be received. This depends on the recipient’s bank account.

Fraud Protection & Safety: Xoom offers only basic fraud protection. It provides guidelines for how to avoid sending money to the wrong person.

Referral Program: The company offers a rewards program. The terms change from one area to the next. However, if others use your name or you invite them to the service, you can earn rewards.

Cash App vs. Apple Pay

With Apple Pay, you can pay for your purchases at a cash register using your phone. It is designed to be fast and easy to use. You can send and receive funds through the iPhone Messages app, too. Most often, it is used for processing merchant payments rather than sending money to friends.

Fees: It is free to use when you use your balance or debit card to transfer money. If you use a credit card, you pay three percent of the transferred amount.

Limits: You can transfer between $10 and $3,000 in a single transaction. You can only transfer $10,000 over a seven-day period.

Availability: Limitations exist here. Only some banks allow the service, and only some credit card companies allow you to link. What’s even more difficult is that merchants have to have Apple Pay set up to use, and that is not widely available.

Payment Types: You can link a debit card or a credit card to your Apple Pay account. Only those that support Apple Pay can be linked.

Speed: The funds transfer instantly. However, receiving money and transferring it to your account can take longer, up to three days.

Fraud Protection & Safety: Apple Pay doesn’t offer direct fraud protection. However, your linked accounts may.

Referral Program: The company doesn’t offer a referral program on a consistent basis.

Cash App vs. Google Pay Money

Google Pay Send or Google Pay Money provides a fast and easy way for you to transfer funds. It comes with 100 percent fraud protection to cover any type of unauthorized purchase.

Fees: You cannot use credit cards or prepaid cards on this app. There are no other fees associated with the transfer.

Limits: There are no limits.

Availability: This is a versatile service, that is available in the U.S. Canada, U.K. Ireland, New Zealand, Australia, and numerous other countries.

Payment Types: With Google Pay, you can send money with a bank account or a debit card. This is the only way that the app can work. By comparison, Cash App allows access to credit cards when needed.

Speed: Most of the time, the transfer speed is two to three days. However, if you are using a debit card, it is instant.

Fraud Protection & Safety: Google Pay provides 100% fraud protection for unauthorized purchases with your account. It must be a verifiable instance of fraud and must be reported within 120 days.

Referral Program: If you invite other, new users to the service, you can earn up to 50 referral rewards. These rewards can then be used to purchase discounts and other offers.

Cash App vs. Remitly

Remitly is a type of online money transfer tool. It allows you to send money from the U.S. to various overseas locations.

Fees: Fees are based on the country you send the funds to. If you use the express payments, this can increase the costs as well. Credit card payments are also more expensive.

Limits: Uses can send between $10 and $20,000 using this service. However, there may be some restrictions based on the countries.

Availability: Remitly is available to many countries. The funds can be sent from bank accounts in the U.S., Canada, and the U.K., as well as many European countries.

Payment Types: You can transfer funds online, through bank transfers, and a credit card.

Speed: It takes between three and five days for accounts to be credited with the funds. In some cases, it can happen faster.

Fraud Protection & Safety: The company offers basic fraud protection. It will suspend accounts and stop transactions if it detects risks.

Referral Program: The company gives you a referral link to use. You can earn rewards for those who sign up using it. The rewards may include discounts on your use of the service.

Cash App vs. Zelle

Zelle is another form of peer-to-peer funding. The service removes money from your bank account and then deposits them directly into your friend’s account – or any other person you wish to send money to. You can send and receive money using the app. You can also use just your phone number or email address to set up your account.

Fees: There are no fees associated with using Zelle.

Limits: There are limits associated with using Zelle. Generally, this is between $1,500 and $2,500 per day or up to $10,000 per month.

Availability: Zelle is only available in the U.S. Both parties need to be in the U.S. to use the service.

Payment Types: The only transactions here are bank-to-bank, which means it does not use credit cards or debit cards.

Speed: The transfers are fast, usually occurring within minutes. For new accounts, it can take up to three days for the funds to become available.

Fraud Protection & Safety: Zelle does not provide any type of fraud protection because it is designed to send money to and from friends. It is not the type of service that will be used at a cash register.

Referral Program: From time-to-time, Zelle will offer a referral program. However, it does not offer one all of the time, and terms can differ.

Cash App vs. PopMoney

PopMoney is a type of peer-to-peer payment method. It is only available through participating banks. Those banks that offer it provide an online dashboard for you to use.  The app deposits funds to your account. The money is sent to your account using another person’s phone number, email address, or bank routing number.

Fees: PopMoney does not use credit cards, so no fees apply from this. It is also free to receive funds into your PopMoney account or to pay a request you receive. However, if you send or request funds, the fee is $0.95 per transaction.

Limits: The only limit here is that you can only use it through connecting banks. Right now, there are over 2,500 financial institutions that offer this service.

Availability: PopMoney is a global company but is currently accessible through about 2,500 financial institutions.

Payment Types: With this account, you can make payments from a debit card or an eligible bank account only.

Speed: Generally, the transfer process takes one to three days. It can take longer in some cases, but there is no faster option available.

Fraud Protection & Safety: One of the challenges with PopMoney is that fraud protection and features can differ from one state to the next. However, they do provide limited liability for most types of unauthorized purchases if you notify the company immediately.

Referral Program: Though you can refer others to the service, PopMoney doesn’t offer a specific referral benefit. This may change in the future.

Cash App vs. Western Union

West Union is a service that has provided a way for consumers to send money to each other from long distances for years. It now allows for this to happen using reliable transfers using its app. The app is available on Google Play and the App Store.

Fees: The fees vary significantly. Fees are $4.50 if you wish to transfer up to $900 but will be higher for some locations.

Limits: You can transfer as little as $300 through the app. You can transfer as much as $2,500 in one transaction.

Availability: Western Union is one of the largest international tools for sending money. It is available in many countries, though the app may not be as readily available.

Payment Types: Western Union allows you to pay using a debit card or a credit card. You can also send funds from your bank account using Apple Pay. There are also local, physical locations you can visit to do the same.

Speed: The Western Union app allows for fast transfers, usually in a day or so. However, you can visit a location for the funds to transfer instantly.

Fraud Protection & Safety: The company doesn’t offer any type of purchase protection because it sends money from one person to the next and verifies identifications during the process.

Referral Program: The Refer a Friend program has different offers for various locations. However, in many areas, you can receive a $20 bonus credit and your friend also receives the same.

Cash App vs. Circle Pay

One of the key benefits of Circle Pay, another payment system for peer-to-peer payments, is that it is more widely available to an international audience than other options. It is also a very affordable option. You can choose the currency that fits your needs, too.

Fees: There are no fees to use Circle Pay. That makes it one of the best options for those who want a cost-effective option. In addition, any instant deposits you make to your linked debit card are also free of charge.

Limits: There are limits to using it. Most people have a $400 per week limit. This is a limit that applies to adding money to your account from your credit card or from a bank account. It also applies to sending money through a debit card. There are no limits for transferring funds from your current balance out.

Availability: Because it has such an international level of access, Circle Pay tends to be a good option for those who want global access.

Payment Types: The only access to payment types is through your bank account or a debit card. This is one of the only drawbacks.

Speed: The good news is that most transactions are fast. Most take between one and four days to process. Then, if you link your debit card, you gain access to instant transfers.

Fraud Protection & Safety: There are different levels of protection based on where you are using your card. Generally, unauthorized transactions are protected if you report them within 60 days.

Referral Program: The company offers a sizable referral program. It pays you a $10 bonus if you refer to people to the app. It also pays a $10 sign-up bonus to your friend at that time.

Bottom Line

Square Cash App is a highly usable and easy to access solution to your peer-to-peer payment needs. Because it is so widely used, it is highly available and can be an excellent solution for most people, even on a global scale. For those who want a moderate fee schedule and a fast transfer time, this is a good place to start.

Author

Edwin is the founder of Voy Media. He started his career at an investment bank before moving to the biopharmaceutical industry. He is currently an editor at Dollar Genie, a finance blog that teaches you how to save money, make money, and live well.

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