Cash App Pilots No-Fee Business Tools for Sole Proprietors

Cash App is testing a new service aimed at helping individuals who earn income as sole proprietors. This service allows them to accept payments and manage their earnings without needing a separate business account or incurring any fees. Eligible sole proprietors can enroll in this service from their personal Cash App account, label payers as customers, and monitor all earnings through a dedicated Earnings Hub.

Cash App will only issue a Form 1099-K if the seller earns over $20,000 and completes more than 200 transactions in a year, as required by the Internal Revenue Service. The pilot program is currently being tested with a select group of eligible customers, with the company planning to expand access to it in the future. Owen Jennings, executive officer and head of business at Block, Cash App's parent company, emphasized the importance of providing the right tools for modern earners who are finding new and flexible ways to generate income.

Cash App has positioned itself as a banking alternative for this addressable market of 125 million people, which includes independent earners, hourly workers, and teenagers. The company expects to grow its primary banking ecosystem while expanding the Cash App Green program, which is designed for customers with multiple income streams.

As of June, Cash App had 59 million monthly transacting accounts, a 3% increase from the previous year, and 9.4 million primary bank accounts, a 17% rise. The company's commerce volume also increased by 17% year-over-year to $56.5 billion.