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Square Cash App Rolls-out Direct Deposit Feature for COVID-19 Stimulus

Amid the COVID-19 pandemic, payments platform Square has come to the rescue of those who do not have access to bank accounts. It is now allowing users to deposit their COVID-19 Stimulus funds through its Cash App. Square claimed that this will enable them to access their funds in an easier and quicker manner. Cash App published a blog post explaining the entire process. 

To educate users about the feature, Square is now using a pop-up on its Cash App – that explains how to deposit payments without a paper check. The Cash App will allot a routing and account number, through which users can receive deposits. Square originally coined the feature back in 2018. 

How does this work? 

The idea behind promoting this feature in the wake of the pandemic is to ensure that citizens without a bank account can receive their deposits quickly without having to wait for paper check arriving in physical mails. 

To get this going, users are quired to sign up for a Cash Card. They will then get a routing and account number. Then, they will have to submit their banking information to the IRS. However, if you happen to be one who does not file a tax return, and would still wish to receive the deposit in the Cash App, then your direct deposit info will be updated into a new account, through a tool scheduled to be released by the IRS on 17th April.

In a quest to help those in need, Jack Dorsey, Square CEO has been constantly promoting this service. Ast week he tweeted a detailed information guide about how to use the Cash App to receive deposits seamlessly. 

Other companies like Venmo and PayPal have also set up similar features where users can receive deposits without a bank account – via the Venmo Card and PayPal Cash Card respectively.