Block's Cash App Borrow has originated over $27 billion in loans since receiving approval from the Federal Deposit Insurance Corporation (FDIC) to directly issue loans, according to a report by American Banker. This figure surpasses the $9 billion in loans that Block reported for the entire calendar year of 2024. The company achieved this milestone in just five quarters since March 2025.
Lending Strategy
The Cash App Borrow product primarily offers short-duration loans to users of the Cash App. Borrowers can repay loans either in a lump sum or through installments, typically incurring a flat fee of around 5% instead of traditional interest rates. Block's underwriting process focuses on a borrower's transaction behavior rather than solely on credit scores. Juan Hernandez, head of credit and underwriting at Block, noted,
In a few weeks of payments, we can get a good look at their financial health.
Market Position
Block aims to compete with traditional banks and other fintech companies like PayPal by enhancing access to lending for younger demographics that may distrust conventional credit systems. Hernandez emphasized the company's focus on improving lending access in ways traditional banks do not. The Cash App Borrow product is part of Square Financial Services, Block's industrial bank unit.
The significant growth in Block's Cash App Borrow could influence the fintech sector, particularly as it challenges traditional banking models. Increased adoption of such lending platforms may lead to a shift in consumer borrowing behavior, impacting banks' market share. Investors will watch for further developments in Block's lending strategy and its potential effects on traditional financial institutions.