Key Takeaways:
- Cash App eliminated all fees and spreads on Bitcoin purchases over $2,000
- All recurring buys through Auto Invest and Round Ups are now fee-free
- The move pressures US competitors to match the lowest-cost option
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Cash App drops all Bitcoin purchase fees for buys above $2,000
Cash App eliminated all fees and spreads on Bitcoin purchases exceeding $2,000, becoming the lowest-cost platform for large and recurring crypto buys in the US market.
The Block-owned payments app announced the change on July 26, removing both the explicit tiered fee and the embedded spread — the gap between market price and purchase price — on all single transactions above $2,000, as well as every recurring and automated buy, a company spokesperson said.
Previously, Cash App charged up to 2.0% on small purchases and 0.9% on transactions between $1,000 and $1,999, plus a spread on top. A 1.5% fee on a $100 weekly recurring buy cost users $78 annually in fees alone. The new policy also covers Round Ups, which sweep spare change into Bitcoin, regardless of transaction size.
For Block, the parent company led by Jack Dorsey, the strategy assumes that zero-fee Bitcoin trades will pull more users into the Cash App ecosystem, where they generate revenue through direct deposit, Cash App Card spending, and peer-to-peer payments. Block reports Bitcoin revenue separately in its earnings, giving investors a clear line of sight into whether the strategy converts fee income into market share gains.
Cash App first introduced Bitcoin buying in 2017, making it one of the earliest mainstream fintech apps to offer direct crypto access. Since then, it has added Lightning Network integration for faster payments and raised Bitcoin withdrawal limits, though specific new thresholds were not disclosed. The company emphasized that all Bitcoin held through the app is backed 1:1 with 24/7 withdrawal access.
The fee elimination targets dollar-cost averaging investors, the most common strategy among long-term Bitcoin holders. By removing cost friction on recurring buys, Cash App positions itself against dedicated crypto exchanges such as Coinbase and Kraken, which still charge variable fees on similar transaction sizes.
This article is for informational purposes only and does not constitute investment advice.
