Cash App Now Allows Stock and Bitcoin Gifting

Cash App Introduces New Gifting Feature for Bitcoin and Stocks

Several methods for gifting cryptocurrencies already exist, but Cash App is streamlining the process with a newly implemented feature within its peer-to-peer payment application.

Block, formerly known as Square, now permits users throughout the U.S. to send both bitcoin and traditional stocks as gifts to fellow U.S. Cash App users.

A First for Peer-to-Peer Payments

Although platforms like Stockpile and Coinbase facilitate gifting stocks and cryptocurrencies, respectively, Cash App highlights that this marks the initial integration of such capabilities into a peer-to-peer payments app.

This new functionality expands upon Cash App’s existing feature allowing users to transmit bitcoin to any $Cashtag on the app without fees.

Sending Gifts Without Owning the Asset

The key distinction of this “gifting” feature lies in the ability to send bitcoin utilizing a user’s Cash App USD balance or a debit card, rather than solely relying on their existing bitcoin holdings.

This means users are no longer required to possess any bitcoin – or stocks – within the Cash App mobile application to send them as a present.

How the Feature Works

Users will effectively be sending the equivalent fiat value of the stock or bitcoin from their Cash App balance or a connected debit card, according to the company.

Previously accessed through the investing tab, this feature is now accessible via the app’s payment tab or a new “gift box” button within the investing section.

Recipients will receive the asset’s market value at the moment they accept the gift.

However, recipients have the option to receive the gift amount in USD instead of the stock or bitcoin.

Timing and Potential Benefits

The launch is strategically timed to capitalize on the holiday gifting season, offering a convenient last-minute gift option.

Furthermore, users can now utilize stocks or bitcoin to split bills and reimburse friends, extending beyond simple cash transactions.

This feature could also encourage new investors to begin exploring stock ownership or bitcoin through Cash App, potentially attracting users away from competitor platforms.

Competition in the P2P Investment Space

Cash App is not alone in expanding into the investment and cryptocurrency markets.

Its primary competitors, PayPal and Venmo, also provide the ability to buy, sell, and hold cryptocurrencies.

Venmo's Approach to Crypto Adoption

Venmo recently introduced a feature allowing credit card users to purchase cryptocurrency using their cash back rewards.

This was designed to lower the barrier to entry for new investors, simplifying the process of cryptocurrency acquisition.

Attracting New Investors

Similarly, Cash App’s gifting feature may attract new investors who might not have proactively sought out bitcoin investments but are introduced to them through friends or family.

The new feature is currently available to Cash App users in the United States.