What Bank is Cash App?

What Bank Does Cash App Use?

Cash App, developed by Square, is a digital payment platform that facilitates peer-to-peer money transfers without the need for physical cash or bank visits. It utilizes the banking services of Lincoln Savings Bank to enable features such as direct deposit. This allows users to receive their paychecks, tax refunds, and other payments directly into their Cash App accounts.

Lincoln Savings Bank, headquartered in Iowa, USA, underpins the banking infrastructure for Cash App's financial services. When users activate the direct deposit function, they are effectively leveraging Lincoln Savings Bank's systems. This collaboration represents a "banking-as-a-service" model, where fintech companies like Square Inc. partner with traditional banks to deliver seamless financial services.

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What Does LincoIn Savings Bank do for Cash App?

Lincoln Savings Bank underpins several key services for Cash App users. It provides unique account and routing numbers essential for the direct deposit feature, allowing Cash App to offer functionalities similar to a traditional bank account. This service enables users to receive paychecks, tax refunds, and other deposits directly into their Cash App accounts.

Furthermore, Lincoln Savings Bank issues the Cash Card, a Visa debit card that can be used at any location accepting Visa. This expands Cash App's usability, allowing users to make purchases and withdraw cash from ATMs.

Importantly, while Cash App itself does not hold FDIC insurance, it benefits from the FDIC insurance of Lincoln Savings Bank. This arrangement ensures that user funds are protected even if Square Inc. faces financial difficulties, leveraging the bank’s insurance to safeguard deposits.

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About Lincoln Savings Bank

Lincoln Savings Bank, headquartered in Iowa, USA, is a full-service community bank offering a range of financial products and services. Established in 1902, it provides personal banking, business banking, and agricultural banking solutions. Notable products include the Lincoln Savings Bank Cash Card, a Visa debit card, and the Lincoln Savings Bank Mobile App for convenient online banking.

The bank plays a critical role in fintech partnerships, such as with Cash App, providing essential banking infrastructure and FDIC insurance coverage.

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Bottom Line

In summary, Cash App leverages the banking services of Lincoln Savings Bank to offer direct deposits and the Cash Card, enhancing its functionality and user experience. This collaboration provides users with traditional banking features while ensuring their funds are protected by FDIC insurance through Lincoln Savings Bank.

This partnership illustrates how fintech and traditional banking can work together to deliver comprehensive and secure financial services.