The mobile payment company Square (NYSE: SQ) announced recently that it is now allowing teenagers who are 13 years or older to utilize Cash App to deposit cash or give it to friends.
Before this decision was made, the app could only be used by adults from the age of 18 and up. With this new rule put into place by Square, young teens will have to receive permission from parents or guardians in order to make usage of the main features of the app.
The app, however, does not permit teenagers to use Cash App in whatever way that they desire. For instance, teens will not be able to obtain access to Bitcoin, cryptocurrency, or have the ability to deposit checks. Some of the features that the app will allow teens to use are peer-to-peer transactions as well as debit cards that can be utilized at live places.
Although Cash App is not among the first apps to provide online banking to teenagers, it nevertheless offers important aspects of online banking, such as a family option that goes along with Apple Pay (NASDAQ: AAPL). There is also a good deal of online banks that are able to provide checking accounts to teenagers, as long as they can be monitored by parents or guardians. Similar to other banking systems that teenagers can use, there are limitations on the locations where Cash Cards can be used.
Teenagers will be unable to use the cards at bars, clubs, liquor stores, cigar stores, hotels, or for lottery tickets, casinos, gambling, bail or bond payments, or car rentals.
Cash App firmly believes that this change to the system will attract even more users, since its audience has expanded to include teenagers. It is on record that there are currently 20 million teenagers in the United States, and Cash App remains one of the most popular and booming digital payment apps in the United States today, with around 70 million users.
Square, with its introduction of Cash App banking to teens, will surely open up a new door and aspect to its business that it had not previously. Although the change is only allowable with permission from parents or guardians, and is only permissible in select locations, teenagers will likely still appreciate the opportunity to use the app in general.