The news: Block debuted Cash App Tags, a payment chip embedded within novelty form factors that users can use to tap to pay without wallets or phones, per a press release.

Tags are connected to Cash App users’ Visa debit cards and can be locked from the app.  

Cash App introduced a limited edition Tags wand with a carabiner to clip it onto a keychain, bag, or outfit. The wand costs $25.

How we got here: Cash App is building on a social media trend of TikTokers creating makeshift payment wands with their credit cards for content. Capitalizing on the cultural zeitgeist could engage users with a novel way to pay—and get publicity doing it. 

Creating a sense of urgency could get more consumers to engage with Cash App: 38% of Gen Zers purchase collectibles, accessories, or limited-edition items at least monthly, more than any other generation, per a November Cash App survey. 

Why this matters: Pay by wand isn’t the next major payment method. However, the promo has done at least one thing—it got everyone to talk about Cash App. 

That media attention could boost brand awareness and Gen Z acquisitions. The wand leans into the “whimsy” trend connecting with those generations—they’re looking for playfulness amid difficult economic and historic situations. 

Tags will also have wider use cases than wands—expanding into wearables that compete with products like Apple Watch for wallet-less shoppers. 

But Cash App may need a better security solution than locking and unlocking Tags with a phone if the primary value of Tags is their phone-free qualities. For Cash App users at events like concerts, festivals, or comedy clubs, digging in your bag to unlock a Tag is actually more cumbersome than just digging out your phone for a mobile payment. 

Implications for payment providers: Engaging Gen Z and millennial consumers with timely cultural tchotchke can make brands more visible. 

However, providers need to be careful when contributing to organic internet trends: Digital natives can consider brands jumping on trends as forced or performative. Making allusions to an ongoing digital cultural conversation can be more effective than outright bandwagoning.

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