Fintech company Block has announced its plans to provide its Cash App solution as a banking option for US consumers. Through this move, Block aims to place Cash App, which, according to the company, has 57 million active users, as a banking option for households across the US. The app provides high-yield savings accounts, debit cards, short-term lending, and BNPL options through Afterpay. Additionally, 2.5 million users deposit their paychecks directly into Cash App, with Block mentioning a 25% year-over-year expansion.However, converting Cash App’s active users into banking customers could pose difficulties for Block, as, despite expansion in services, the company’s stock is witnessing a 32% year-to-date drop. Commenting on the news, representatives from Block mentioned that their company’s objective is to evolve from a peer-to-peer payment app to a full-service banking platform that could serve the needs, demands, and preferences of users. Furthermore, through Cash App, Block intends to provide services to a wider range of individuals, including those who typically do not have access to the financial system. With the mobile platform, the company seeks to facilitate access to core money management tools and allow optimal spending, savings, borrowing, and investing

Block’s Cash App is reportedly making progress in its efforts to offer banking services to customers who mostly use the app to make payments. The number of the app’s users who have their paychecks directly deposited into their Cash App account rose by 25% year over year to reach 2.5 million in December, Bloomberg reported Thursday (April 3). This is a key metric because those who have set up direct deposit are most likely to use the company’s other banking services, according to the report