The news: Cash App will let consumers convert P2P money transfers worth $25 and above into installments for an upfront fee, per a press release.

Cash App members will be able to convert P2P payments made within the last 30 days to installment plans that pay out on a weekly basis. 

How we got here: Cash App has leaned on payment flexibility as a growth engine, which has accelerated after unifying Afterpay’s ecosystem with Cash App’s last year. 

Since then, Cash App launched of the Cash App Card with Visa flexible credentials, Cash App Green, and Cash App Borrow, which has been both popular with consumers and profitable for the fintech: Cash App Borrow originations spiked 134% YoY in Q3 2025, and the app earned a 30% return on invested capital for short-term lending, per comments from Block business lead Owen Jennings on a client call.

Why this matters: Block has centered its business on capturing demographics with no or thin credit histories who need access to alternative credit. 

Pushing into P2P gives Cash App another way to use payment flexibility and cash-flow assistance as a loyalty mechanism to keep users within its ecosystem—especially as rivals make inroads to its core consumers.

The flat fee for converting a P2P payment into installments also gives Cash App a new revenue stream, while also encouraging users to push larger amounts of money on transfers knowing they can split the payments down the line. 

Implications for payment providers: As the cost of living crisis deepens, consumers may look for ways to optimize their cash flow and finance transfers between family and friends. 

Investing in alternate credit scoring platforms can help fintech and FIs better assess consumer creditworthiness as they seek lower-value loans to manage daily purchases—and then offering them in unique formats can maintain their key audiences’ attention and loyalty for more cross-selling opportunities.