Cash App Lets You Pay Later for Transfers

Cash App, owned by Block, has introduced a "pay-over-time" feature for eligible users, enabling deferred payments on everyday transfers. This expansion into flexible financing for peer-to-peer transactions aims to support individuals, particularly younger entrepreneurs and gig workers, who experience variable income.

The new service applies to transfers of $25 or more, with users incurring a 7.5% fee. Repayments can be structured weekly over six weeks or made as a single payment by the due date. Loan limits are dynamic and individually assessed rather than based on traditional credit scores.

Block's Global Head of Business, Owen Jennings, highlighted the feature's design for "cash flow management," acknowledging the shift in employment patterns towards less consistent income streams. He stated that the product is built with "non-revolving" loan structures and includes protections against "debt spirals," where failing to repay a loan prohibits taking out another.

This offering complements Cash App's existing financial flexibility tools, such as its "Borrow" service and Afterpay integration for its debit card, further enhancing user options for managing payments.