The news: Cash App launched Neighborhoods, a network aimed at connecting local Square sellers with Cash Apps users in their stomping grounds.

Square merchants will get their own branded storefront on the web and inside Cash App, and a 1% transaction fee for all orders with any payment method.

Why this matters: Block has been trying to integrate its Cash App and Square offerings into a two-sided network. 

Merging Cash App and Afterpay jump-started this process in March, setting a precedent for integrated payment products. Neighborhoods pushes that ambition further, knitting together Square’s 4 million sellers and Cash App’s 57 million monthly active accounts through one mobile interface. 

On the seller side, local businesses (SMBs) have a greater chance to compete against major retailers’ scale and reach backed by the Cash App network’s rewards, loyal consumers, and free marketing and discovery tools.

Zooming out: Beyond Neighborhoods, other payment providers are also trying to immerse their consumers in a local rewards structure. 

At AWNY 2025, Bilt CMO Zoe Oz also outlined Bilt’s aim to immerse consumers into Bilt-connected local environments where cardholders can earn rewards at their neighborhood gym and juice bar—making payment perks feel always within walking distance.

Our take: Leaning into local business support could help drive customer acquisition for mobile wallets. Consumers prioritize the convenience and personal connections fostered with neighborhood vendors, making transacting all the more possible when storefronts are within easy walking or driving distance. 

Adding rewards for local shopping can also help serve consumer who want to prioritize patronizing SMBs over chains: 65% of the Gen Zers shop locally to feel more connected to their communities, per Marketing Charts. By fusing values-based spending habits with frictionless checkout and rewards, payment providers can tap into valuable young adult spend.

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