Block, Inc. announced on March 13, 2025, that its industrial bank subsidiary, Square Financial Services, Inc. (SFS), received approval from the Federal Deposit Insurance Corporation (FDIC) to begin offering the consumer loan product Cash App Borrow nationwide. This approval allows SFS to originate these loans directly, expanding access to eligible Cash App customers across the country.
The ability to originate and service Cash App Borrow loans in-house is expected to significantly improve the unit economics of the product for Block. Previously, the company relied on an external bank partner for originations, which reached nearly $9 billion in 2024.
Cash App Borrow is designed to provide short-term cash flow, with an average loan size of less than $100 and a duration of approximately one month. The product has maintained historic loss rates of less than 3%, and the nationwide expansion is a strategic move to further economic empowerment for consumers not well-served by traditional banking systems.
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