Cash App business customers gained the option to accept payments using an iPhone in recent weeks, parent company Block said Tuesday.
Apple's tap-to-pay feature — which lets consumers pay by tapping their credit or debit card on a compatible payment terminal — is now available to businesses that accept Cash App, a Tuesday news release said.
A Block spokesperson declined to say precisely how many companies use the Cash App business offering — a service that lets small business owners accept money through the payment app — but the news release said the figure is about one million.
The spokesperson said Block began rolling out the feature over the last few weeks.
Block’s Beta testing of the feature found that merchants using the contactless payment method had a 35% increase in purchase volume compared to sellers who don't use it, the news release said. The Block spokesperson declined to provide more details about the beta test.
Using the new tool lets sellers reach businesses outside the Cash App circle “who use contactless debit or credit card, or a mobile wallet," Owen Jennings, head of business at Block, said in the news release.
The announcement comes two months after Block reported earnings growth for Cash App that was lower than analyst expectations.
Cash App’s first-quarter gross profit grew 10% compared to the year-ago quarter. The company anticipated bigger growth in Cash App's earnings, Block Chief Financial Officer Amrita Ahuja acknowledged at the time in a May 1 earnings call.
