How Block Makes Money

Block runs a two-sided network. On the seller side, Square charges a fee on each card payment (in the U.S. on its free plan, 2.6% plus 15 cents in person and 3.3% plus 30 cents online) and adds paid software, hardware, payroll, banking and Square Loans. On the consumer side, basic Cash App transfers are free; the app earns from Cash App Card interchange, instant transfer fees, Borrow short-term loans, Afterpay pay-in-four plans and the spread on bitcoin sales. Gross profit is the number management steers by: $10.36 billion in 2025, with Cash App contributing $1.83 billion and Square $993 million in the fourth quarter alone. The long-term aim is to connect both sides, so that a Cash App customer pays a Square seller through Cash App Pay, Afterpay or the Neighborhoods local rewards program and Block keeps the economics at both ends.

Block's 2026 plan has four parts. Square is selling to larger and international sellers through a field sales team and independent sales organization partners; international GPV grew 28% in the second quarter of 2026. Cash App wants to be the main bank account for people with several income sources, using direct deposit and Cash App Green rewards status; primary banking actives reached 9.4 million in June 2026, up 17%. Lending is expanding through Borrow, Afterpay and Square Loans, all originated more cheaply now that Block's own bank handles Borrow. And Neighborhoods links Square sellers with nearby Cash App customers; it passed $1 billion of annualized seller GPV in June 2026. Bitcoin remains a long-term bet through Bitkey and Proto mining rigs, which began shipping in late 2025.