Block’s Cash App Launches Buy-Now Pay-Later Option for P2P Transfers

Cash App, the peer-to-peer payments platform owned by Block (XYZ), has introduced a new “pay-over-time” feature that lets eligible users split everyday transfers into smaller payments. The move brings buy-now, pay-later-style financing into a space that has traditionally been used for simple, instant money exchanges between individuals.

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The feature reflects a bigger shift in how fintech companies are improving routine transactions. What started with financing larger purchases has steadily moved into smaller, everyday spending, and now even peer-to-peer transfers are part of that evolution.

How the New Feature Works

Users who choose the pay-over-time option will pay a 7.5% fee on the amount borrowed. For example, sending $100 through the feature would mean repaying $107.50. Transfers starting at $25 qualify, and repayments can be made weekly over up to six weeks or settled in one lump sum at the end.

The amount each user can access is not fixed. Instead, Cash App evaluates transactions individually based on internal lending criteria. According to the company, eligibility depends on both the size of the transaction and the user’s financial profile, rather than a traditional credit limit.

Block says the feature is designed to help users better manage uneven income. Company executive Owen Jennings pointed to the rise of gig work, side hustles, and freelance jobs, noting that many people no longer receive steady paychecks. The option to spread payments, he said, gives users more flexibility in handling short-term cash-flow gaps.

Growing Demand for Deferred Payment Services Raises Concerns

The launch comes as deferred payment services continue to grow rapidly, especially among younger consumers. Similar offerings have already expanded into areas like food delivery, where even small purchases can now be financed over time.

At the same time, critics warn that these tools can encourage overspending or lead to cycles of debt. Some companies in the space have faced legal challenges, including recent allegations of predatory practices tied to similar services.

Cash App says it has built safeguards into its system to reduce those risks. Its loans are non-revolving, meaning users must repay what they owe before borrowing again. The feature also builds on existing services within the app, including short-term loans and deferred payment options tied to its debit card program.

Is Block Stock a Good Buy?

According to TipRanks, 33 Wall Street analysts maintain a Strong Buy rating on Block (XYZ). The stock has an average price target of $84, implying 43% upside potential. This positive outlook is driven by expected growth in Cash App and improved earnings performance. For investors who want to track ratings, price targets, and performance for XYZ and other payment stocks, visit TipRanks’ Stocks Comparison Center.

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