Cash App has launched a new feature that helps consumers with their savings.
Designed to make it easy for people to save for the first time, the new Cash App Savings allows customers to save with a separate balance, set savings goals and round up their purchases to add to their savings, the company said in a Tuesday (Jan. 31) press release emailed to PYMNTS.
“Many Cash App customers are already treating Cash App as an informal savings tool, and a separate savings balance was one of the most asked for features,” Cash App Head of Financial Services Ryan Budd said in the release.
FinTechs are tapping into a trend of helping consumers with their financial well-being by offering a variety of digital tools. For example, some are introducing products that empower consumers with an overview of their spending habits, tag purchases with a label to help them identify spending categories and incorporate historical data into a budget.
The release of this new feature from Cash App comes days after buy now, pay later (BNPL) giant Klarna added a financial planning tool to its core functions. The new Money Story feature in the Klarna app presents data in an animated format similar to that seen on social media, and aims to engage users, deliver useful insights and cultivate smart spending habits.
Like that feature, the new tool from Cash App arrives during Financial Wellness Month.
With this first iteration of a Cash App Savings product, anyone with a Cash App account can set aside cash in a separate balance, set a financial goal and save at their own pace, according to the press release.
In addition, with the Round Ups feature, the spare change from each purchase made using a Cash App Card will be automatically deposited into a separate savings balance, the release said.
“We’re constantly evolving our offerings to meet the needs of our customers and can’t wait to deliver even more functionality to help our customers save and grow their money,” Budd said.