- To attract more consumers, Block's Cash App has partnered with Shake Shack to offer bitcoin to Cash App users who make purchases through the app, the mobile payment app said in an emailed statement.
- As part of the promotion ending in mid-March, Cash App users can receive 15% back in bitcoin instead of U.S. dollars on Shake Shack purchases using Cash App's debit card, according to the email.
- Users can also earn bitcoin by purchasing items through the payment app's rewards program, which is available to the debit card users, per the email.
As Shake Shack teams up with Cash App to introduce its new cryptocurrency incentive, research suggests that consumers are interested in receiving cryptocurrency as part of their loyalty rewards offerings.
According to a Bakkt survey of 1,000 U.S. consumers released last month, more than half (51%) said they want to benefit from the value of cryptocurrency in addition to earning loyalty points. The survey also noted that cryptocurrency buyers and consumers with salaries of more than $100,000 are more likely to have enrolled in ten or more loyalty programs.
"Shake Shack is one of the first brands on Cash App to offer Bitcoin as a reward for purchases as it looks to meet guests how and where they want and reach Cash App's younger user base," a Shake Shack spokesperson noted in the email. "Shake Shack's first-of-its-kind Bitcoin rewards program comes as other (quick-serve restaurants) are reimagining loyalty programs and brands test out cryptocurrency activations."
Cash App's rollout of cryptocurrency incentives comes as more companies integrate cryptocurrency payments into their payment options, ranging from established payment companies like Visa to crypto newcomers like BitPay. Plus, a July 2020 report from Forrester and BitPay found that cryptocurrency consumers have an average order value of $450 on other types of purchases, higher than $200 for fiat currency users.
Block, formerly known as Square, has been on the hunt for new Cash App users at the same time the payment app has come under newfound regulatory scrutiny over its business practices.
The company disclosed that it spent $485 million in Q4 marketing and sales expenses, a 40% increase compared to last year. Block CFO Amrita Ahuja also noted during the Q4 earnings call that its customer acquisition expenses rose from $5 to $10.
Meanwhile, Bloomberg reported earlier this month that the company is under investigation by several state attorneys general and the Consumer Financial Protection Bureau concerning Cash App. According to Bloomberg, the CFPB and the attorneys general have requested information about the mobile payment app's handling of consumer complaints and disputes.