Source: CNBC
Summary
Block, formerly Square, has launched a “buy now, pay later” (BNPL) feature for its Cash App users. The feature, called “Cash App Borrow”, allows users to borrow up to $200 for a flat fee, with the option to repay in four installments over six weeks. Block says the feature has strong built-in protections to keep users from so-called debt spirals. The company reported that it has been testing the feature with a small group of users since last year.
Our Reading
The launch follows a familiar script.
Block’s “Cash App Borrow” is the latest entry in the buy now, pay later market. It’s a feature that’s been done before, with a twist. The company claims to have built-in protections, but we’ve heard that one before. The flat fee is a nice touch, but the debt spiral protection sounds like a beta feature. Because “we’ve been testing it with a small group of users” is just a nice way of saying “we’re not really sure how this will work out”.
Author: Evan Null
