Why Cash App is launching its largest banking campaign to date

Cash App is the latest financial technology brand to push its suite of banking features as traditional banks lose ground to their digital counterparts. Today, the Block-owned brand released two ads for its first campaign highlighting various banking capabilities under one brand platform as it looks to create a full-service financial ecosystem. The campaign is Cash App’s largest marketing investment in its banking features to date, said Catherine Ferdon, chief marketing officer at Cash App. “Our goal is to make Cash App the top provider of banking services to households all across the U.S. that are making up to $150,000 per year,” she said. “To do that, we’re really focusing on creating a truly competitive banking offering and introducing benefits that go far beyond what traditional financial institutions provide.” The hero film, nearly two minutes long, shows delivery workers, one of whom is played by TikTok creator Leo Gonzales, attempting (and failing) to convince a friend to invest in crypto. The friend responds that his paycheck is automatically distributed among investments as the ad shows funds split among checking, saving, bitcoin and stocks accounts within Cash App. Another 30-second spot shows a woman using her Cash App debit card to make an unexpected payment and enjoying fee-free overdraft coverage. Anomaly created the ads, which Cash App will put on social and digital channels. Cash App debuted the campaign in February with out-of-home billboards across New York, Atlanta, Chicago and Houston. The newest feature shown in the ads is Cash App’s tortoise-shell patterned debit card released in February, which makes a brief appearance in the 30-second spot promoting overdraft coverage. Cash App first rolled out free overdraft coverage up to $200 and automatic paycheck distribution in 2023. The fintech plans to release two more ads this spring promoting its debit card Afterpay feature, which it began rolling out in February. The option lets Cash App debit card holders pay for purchases made with the card in installments. Block co-founder Jack Dorsey has for years made his intentions known to turn Cash App into a primary banking platform. Cash App’s marketing push comes as fintechs continue to challenge traditional banks. Last year, 44% of new checking accounts were created with digital banks and fintechs, while traditional banks and credit unions accounted for 43%, according to a January report from consulting firm Cornerstone Advisors. Much of that success was enjoyed by Cash App’s competitors, with Chime and PayPal accounting for 49% of digital bank and fintech account openings. Cash App is relying on its debit card and newly launched Afterpay feature to introduce consumers to its other banking features. Of its 57 million monthly active users, 25 million use the Cash App card every month and 2.5 million regularly take advantage of direct deposit, according to the brand. “A customer may start with peer-to-peer, then they may graduate into a Cash App card, and then they may discover a host of these features that are all featured in this campaign,” Ferdon said. Once in Cash App’s ecosystem, consumers have less reason to bounce between financial institutions for different services or deals, which they currently do a lot of. Half of Americans who opened a checking account in 2024 have two or more checking accounts, according to the Cornerstone Advisors report. Many are testing out a free or lower-fee account and are not committing to making fintechs their sole, or even primary, account. “The lower end of the income spectrum tends to change jobs much more frequently,” said Jason Mikula, publisher of the Fintech Business Weekly newsletter and head of industry strategy, banking and fintech at AI software platform Taktile. “For this population, every time you change employers, you have that new direct deposit sign up, and you think ‘Am I gonna get a bonus if I sign up at Cash App or is PayPal going to give me something?’” Last year, 29% of Gen Zers and millennials and 22% of Gen Xers called a fintech or digital bank their primary checking account provider, according to Cornerstone Advisors. Data-Driven Marketing Playbook Join us May 22 in NYC to explore how data powers marketing Learn more here Cash App may have success using debit card Afterpay to get consumers into banking, as installment-based payments have been fintechs’ greatest weapon against traditional banks and their credit card businesses thanks to low or non-existent interest rates. But set-up fees are often charged. To catch up, several banks have taken cues from fintechs and leaned on installment-based payments. Last year, Citi reported a 24% decline in profits for its U.S. personal banking segment, which includes credit cards. In January, it began offering deferred payment loans through Apple Pay. J.P. Morgan in February announced a new partnership with Klarna to offer buy now, pay later to its business clients. Plus, new players continue to enter the banking space, further blurring the lines between digital banks, payment platforms and physical institutions. Klarna, best known for its buy now, pay later services, began offering a savings account in August, while PayPal has been promoting Venmo’s debit card and its payment platform “Pay With Venmo,” which saw 30% and 20% monthly active growth in 2024, respectively. Read more: PayPal’s biggest US campaign stars Will Ferrell In February, Block reported a 4.5% increase in fourth-quarter revenue to $6.03 billion, which fell short of analysts’ average forecast of $6.29 billion. Analysts expect Cash App’s lending services to drive future monetization. “There will be a significant reason to use Cash App and not have to go to the App Store for 10 different apps,” Dorsey said on Block’s fourth-quarter earnings call. “Everything is in one app, and that will be the Cash App.”

Why Cash App is launching its largest banking campaign to date

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