Summary: Cash App, developed by Square Inc., is a peer-to-peer money transfer service that partners with Iowa-based Lincoln Savings Bank to offer direct deposit features and issue unique account and routing numbers. This "banking-as-a-service" model allows Cash App to leverage Lincoln Savings Bank's FDIC insurance indirectly, providing financial security to its users.
Get the daily newsletter keeping 200,000 investors ahead of the market.
What Bank Does Cash App Use?
Cash App, created by Square Inc., is a peer-to-peer service for instant money transfers without needing physical cash or a bank visit. It has partnered with Lincoln Savings Bank to offer features like direct deposit, enabling users to receive paychecks, tax returns, and other payments straight into their Cash App account.
Lincoln Savings Bank, a financial institution based in Iowa, USA, provides the banking services behind this. This essentially means that when you're using the direct deposit feature of Cash App, you're technically using Lincoln Savings Bank's banking infrastructure. This partnership between Cash App and Lincoln Savings Bank is a form of what is known as a "banking-as-a-service" model, where tech companies partner with traditional banks to provide financial services.
What Does LincoIn Savings Bank do for Cash App?
As part of the arrangement, Lincoln Savings Bank issues a unique account and routing number to Cash App users for their direct deposit service, making it operate much like a traditional bank account. It is worth noting that The Cash Card, a Visa debit card that can be used anywhere Visa is accepted, is also issued by Lincoln Savings Bank.
Significantly, while Cash App itself is not an FDIC-insured entity, it leverages the FDIC insurance of its partner bank, Lincoln Savings Bank. Therefore, even if Square were to face bankruptcy, the funds held in Cash App accounts would still be safeguarded due to this indirect FDIC protection via their partner banks.
Does Cash App Connect to Plaid?
Yes, Cash App does integrate with Plaid. Plaid is a popular financial services company that allows apps to connect with users' bank accounts using APIs. This means that if you are using an app or service that utilizes Plaid, you can link it with your Cash App account to transfer US Dollars (USD)
Cash App Bank Name and Address
While Cash App, developed by Square Inc., collaborates with Lincoln Savings Bank for certain features, remember that Cash App is not a traditional bank and does not have a typical bank name or address.
For any banking operations such as direct deposits or bill payments, always refer directly to the official Cash App app for your unique routing and account details.
To sum up, Cash App partners with Iowa's Lincoln Savings Bank, enabling it to offer bank-like features such as direct deposits and unique account numbers. This partnership illustrates a "banking-as-a-service" model where tech firms collaborate with traditional banks to offer financial services.
Cash App also indirectly enjoys Lincoln Savings Bank's FDIC insurance, adding financial security for users. Moreover, Cash App integrates with Plaid, enabling app-to-bank connectivity. Remember, Cash App is not a traditional bank, and for banking operations, users should consult the official Cash App platform.