Square’s Cash App helps U.S. citizens and people who typically don’t file a tax return to direct potential government stimulus payments to the mobile payment app.
The step comes after the firm struggled to convince the U.S. Treasury to allow it to allocate the stimulus funds to U.S. population segments.
Cash App users can apply for stimulus payments to the app
Internal Revenue Service (IRS) green-lighting the delivery of stimulus funds to residents within hours. Who do not file tax returns on April 10, Square users can accept payments made under the Coronavirus Aid, Relief and Economic Security (CARES) Act directly into their Cash App balance.
A post on Square’s website states that the app will have “routing and account numbers. That you can use to deposit your bonus payment directly into your Cash App balance.”
Square launched an online portal on the same day. In addition, to make it easier for non-tax paying users to submit payments from the IRS to their Cash App account. A similar platform will be rolled out on April 17. Also, to enable taxpayers to seek payment on their balance in the Cash App.
Executives from the Cash App and Venmo, the other digital payment network, recruited the U.S. in late March. Treasury discussing how to help disburse the stimulus package.
Cash App reports increased Bitcoin involvement during March
During the global economic downturn, Square saw an increase in Bitcoin (BTC) involvement in its Cash App.
Square CFO Amrita Ahuja reported during an investor call on March 21 that “the adoption and commitment of a fractional equity investment in Bitcoin have accelerated in recent weeks” citing “recent market interest and volatility.”
BTC is becoming increasingly the core of Square’s sales. With a shareholder letter revealing at the end of February that half of the company’s Q4 2019 revenue came from Bitcoin’s Cash App services.