Cash App Adds BNPL to Peer-to-Peer Payments

Ever wished you could split a payment to a friend without draining your bank account all at once? Well, Cash App is making that a reality! They’re rolling out a new feature that brings the popular ‘Buy Now, Pay Later’ (BNPL) option directly to your peer-to-peer (P2P) transactions. This means sending money to friends just got a whole lot more flexible.

How Cash App’s BNPL Works for P2P

Starting April 2, 2026, Cash App users can leverage the app’s Afterpay feature to split P2P payments exceeding $25 into manageable installments. The magic here is that the person receiving the money gets the full amount upfront. Meanwhile, the sender pays back the amount over time, either through weekly payments or a single lump sum later on, all for an initial fee.

This move is a natural expansion of Cash App’s existing payment-over-time options. Owen Jennings, head of business at Block (Cash App’s parent company), noted that millions of customers are already comfortable using these features for card purchases. Now, that familiar experience is extending to more types of transactions within the app.

BNPL Growth and Potential Concerns

The ‘Buy Now, Pay Later’ model has seen explosive growth, offering consumers a convenient way to manage purchases, especially during tough economic times. However, this flexibility isn’t without its risks. A 2025 LendingTree survey revealed that a significant number of users – 41% – admitted to making late payments on BNPL plans, a jump from the previous year.

Furthermore, the survey indicated that 33% of users view BNPL loans as a temporary bridge to their next paycheck. This increasing reliance on installment plans, coupled with late payments, could potentially impact credit scores. With FICO now incorporating BNPL data into credit scoring, as reported in June 2025, Cash App’s expansion into this market adds another layer to consider for consumers managing their finances.

Context: Layoffs and AI at Block

Interestingly, this BNPL expansion comes shortly after Block laid off nearly half its workforce, with plans to integrate AI into roles. This mirrors a broader trend in the tech industry, as seen with Meta’s recent workforce reductions and increased focus on AI tools. It highlights a period of significant strategic shifts within major tech companies.