Block Inc., led by CEO Jack Dorsey, is positioning Cash App as a banking option for US households.

The app has 57 million active users, but converting them into banking customers remains a challenge. Currently, 2.5 million users deposit their paychecks directly into Cash App, a 25% year-over-year increase.

The app now offers high-yield savings accounts, debit cards, short-term lending, and buy now, pay later options via Afterpay.

In March, Block’s subsidiary, Square Financial Services, received FDIC approval to issue short-term consumer loans.

Despite growth in services, Block’s stock has dropped 32% year-to-date and is down 80% from its 2021 peak. The company is targeting households earning up to US$150,000 annually.

Owen Jennings, a business lead at Block, said the goal is to evolve from a peer-to-peer payment app to a full-service banking platform.

Block faces tough competition from Chime and Robinhood. Cash App also faced regulatory scrutiny, including a CFPB order to refund US$120 million over poor fraud investigations.