Cash App for Teens: Square Launches Accounts with Parental Controls

Cash App Expands Access to Younger Users with Parental Controls

Square Inc.’s Cash App is now accessible to a younger demographic, specifically teenagers aged 13 to 17. Previously, a minimum user age of 18 was required, aligning with competitors such as Venmo. This expansion broadens the app’s user base and introduces a new segment to its peer-to-peer payment system.

Customizable Cash Cards for Teens

Younger users will require parental or guardian authorization to establish an account. Once approved, they can utilize the app for sending and receiving payments, and will have access to a Cash Card. This card, functioning as a Visa debit card, is directly linked to the teen’s Cash App account.

The Cash Card offers personalization options through the mobile app. Users can select colors, apply stamps, create designs, or even activate a glow-in-the-dark effect. Standard card colors include black and white, while specialty versions, like the Glow in the Dark or 100 Thieves editions, are available for $5.

Core Features and Limitations

Teens will be able to engage in peer-to-peer transactions with friends and family, joining Cash App’s network of over 40 million monthly active users. Access to features like spending rewards at select retailers, ATM withdrawals (with a $2 fee), and direct deposit of paychecks will also be available.

However, certain features remain exclusive to users aged 18 and above. These include Bitcoin and stock investing, as well as services like Borrow, Check Deposit, Paper Money Deposit, and international payments.

Parental Oversight and Account Management

The accounts designed for teenagers prioritize parental supervision. Authorizing parents are designated as the legal account owners and can monitor monthly activity via Statements. They retain the ability to suspend or close the teen’s account and Cash Card at any time.

Restrictions are also placed on where the Cash Card can be used, mirroring limitations found in other teen banking services. Prohibited locations include bars, clubs, liquor stores, hotels, casinos, and establishments selling lottery tickets or offering bail bond services.

The company anticipates significant growth by tapping into the teenage market, which comprises approximately 20 million individuals in the U.S. and represents a growing segment of consumer spending.

Growth and Competition in the Digital Payments Landscape

This expansion occurs as Cash App experiences rapid growth within the digital payments sector. Currently, the app boasts 70 million annual transacting customers and has recently integrated more closely with its parent company, Square, Inc., through the launch of Cash App Pay.

The app’s growth was also fueled by the increased adoption of digital payments during the pandemic, as well as its role in distributing COVID stimulus checks and unemployment benefits. In 2021, Cash App generated a gross profit of $546 million, a 94% increase year-over-year.

This performance positions Cash App as a strong competitor to Venmo, which currently has 76 million users. Expanding access to teenagers could further narrow the gap between the two platforms.

Navigating a Competitive Market

Despite its potential, Cash App will face competition from other mobile banking solutions targeting teens and families, including Greenlight, Step, Current, Revolut, Till Financial, and Go Henry. However, Cash App distinguishes itself by offering a service that users can continue to utilize as they age.

The teen version of Cash App is now available on both iOS and Android devices in the U.S. Further information can be found on the dedicated website: cash.app/13+.