The news: Square’s Cash App is now letting users 13 to 17 years of age join its platform and open a Cash Card with parental oversight—previously, Cash App was only available to users over 18, per TechCrunch.
Here’s how it works: Teens who sign up for Cash App will need to have a parent or guardian authorize their account before they can make peer-to-peer (P2P) payments or apply for a Cash Card, which is a Visa debit card tied to a user’s Cash App account.
Trendspotting: Financial service providers have been targeting younger consumers by offering tailored products or enabling age-restricted access to existing products.
The opportunity: Opening its platform to teens extends Cash App’s US addressable market by 20 million—which is the company’s estimate for the size of the teen population in the US. This can boost Cash App’s user base well beyond the nearly 40 million it's projected to hit by the end of this year, according to Insider Intelligence forecasts.
Square is extending its Cash App ecosystem at an opportune time: Gen Zers are spending more now than they did before the pandemic, per American Express—for context, this demographic possessed $143 billion in spending power in 2018. Offering its Cash Card to this base can therefore help increase Square’s payments volume and card revenue. And it also gives the company a bigger market share in the US P2P payments space, which is expected to hit a value of $785.19 billion by the end of 2021, per our forecasts.
Related content: Check out the Mobile P2P Payment Spending section of our “US Mobile Payments Forecast 2021” report to learn about how the industry is shifting.
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