The news: Block’s latest earnings report revealed strong performance from Cash App, in contrast to Square's disappointing results.

The model: Block has evolved Cash App from a peer-to-peer (P2P) app into a digital-native bank for US households earning up to $150,000 annually. Products now include a high-yield savings account, free trading for traditional and crypto assets, free tax filing, and lending. Block has embedded Afterpay in Cash App, and it grew Cash App Borrow’s total loan originations to nearly $9 billion in 2024.

The competition: The playbook of expanding products should sound familiar: Chime, SoFi, and Robinhood are just three fintechs taking this approach in the space:

• Chime has grown its product set from checking accounts and debit cards to include a savings account, secured credit card, and small-dollar lending products.
• Robinhood started as a commission-free brokerage app for millennial retail investors and has since added crypto trading, banking capabilities, a credit card, and trading in prediction markets.
• SoFi has transformed from a student lender into a digital retail bank with a vast array of products. It offers checking and savings accounts, self-directed brokerage and robo-advisory, credit cards, consumer loans, and blockchain-based payments.

Our take: These fintechs and their peers all target younger, low- or middle-income consumers who are looking for products and features, a fee structure, and a digital experience that traditional financial institutions don’t offer. All aim for highly engaged customers and primary relationships.

Banks once feared that neobanks would usurp them, but it’s now clear that these fintechs primarily compete with each other. After consolidating industry niches, they’ve scaled rapidly—expanding their product offerings as they fight for the same consumers.