The news: Cash App launched “pools”—a feature to make group payments frictionless—to a limited number of US-based users with plans for a later wider rollout, per a press release.

How pools work: A Cash App organizer can either invite participants to make contributions to a pool either by their $cashtag in app or through a shareable link that supports integrations with Apple Pay and Google Pay. Pools are nameable and organizers can set clear goal amounts to invited participants.

Pools' opportunities: Cash App prides itself on expanding financial services for the unbanked and underbanked. While group P2P payment providers like Venmo and Splitwise require an integration with either a bank account or an existing credit card, Cash App serves users without either. Cash App can capitalize on this underserved group that likely needs group payment services and has been overlooked by available financial platforms.

Our take: Cash App wants to cement itself among Gen Z users, households making up to $150,000 annually, and the populations traditionally forgotten by legacy financial institutions. 

However, the app’s previous lack of group payment functionality left its users open to poaching by competitors. With pools in place, Cash App can continue its focus on the young and underserved as competitors like Venmo pursue strategies targeting college students with promotions like branded Big Ten and Big 12 debit cards. The war is on to capture Gen Z’s P2P payment loyalty—and Cash App has positioned itself better for the fight than ever before.