- Key insights: Cash App partnered with fundraising and donor management platform Givebutter for payments to nonprofits.
- What's at stake: The integration with Givebutter marks Cash App's first integration into philanthropic payments.
- Supporting Data: Charitable payments in the U.S. grew 6% year over year to $592.5 billion in 2024, according to the Giving USA Foundation.
Cash App has ventured into philanthropic payments as part of its wider quest to increase the app's network effect and entice more people to use its service.
Block's P2P service has partnered with Givebutter, a fundraising and donor management platform for nonprofits, to integrate Cash App Pay into Givebutter's platform. The combination will enable nonprofits to accept payments and donations from Cash App users.
The integration with Givebutter marks Cash App's first integration in philanthropic payments, Tanuj Parikh, head of commercial, North America for Cash App and Afterpay at Block, told American Banker.
"We're continuously exploring opportunities to expand our payment solutions to various sectors to meet consumers and businesses where they are," Parikh said.
Givebutter has more than 65,000 nonprofits using its platform, Max Friedman, Givebutter's CEO, told American Banker.
"Cash App is the latest addition to what we're believing is the widest array of payment methods available to nonprofits via a single integration with Givebutter," Friedman said. "[The partnership] unlocks a range of opportunities for nonprofits to engage a younger donor demographic, and especially smaller dollar donors, which are more important than ever, especially with recent legislation that encourages this. Everyone has the opportunity to receive a tax deduction for their gifts."
Charitable payments in the U.S. grew 6% year over year to $592.5 billion in 2024, thanks to stock market gains and GDP growth that led to more donations from individuals and corporations, according to the Giving USA Foundation, a nonprofit that tracks charitable giving.
Over 57 million people use Cash App and a majority of those – about 72% – are under the age of 35, according to Friedman.
Givebutter is hoping to capture more small-dollar donations through its partnership with Cash App, Friedman said. "Over 90% of donors give under $500 … but it's only half our [donation] volume."
Cash App's younger demographic also presents an opportunity for Givebutter to "grow with [donors] over time as they get further into their career and have more capacity to give," Friedman said.
Cash App Pay uses its Stripe connection to integrate with Givebutter, Parikh said. "This technical foundation allows us to serve diverse verticals efficiently, including Givebutter."
For Cash App, the Givebutter integration gives the fintech another touchpoint for its users to engage with its brand, and furthers the company's
Block's initiatives over the last 12 to 24 months have helped set the fintech up to deliver strong results in the second half of the year, according to Keefe Bruyette and Woods analyst Vasundhara Govil.
"The Cash App segment is once again on track to deliver the steep growth acceleration originally projected for the year, with Borrow remaining a key driver," Govil said, but noted that the company may try to reframe the Cash App narrative away from its lending product.
"New disclosures suggest that Cash App's most engaged user base is broader and more durable than previously understood, with 11 million high-frequency users — nearly 2x Chime's prime account base — indicating a scaled banking cohort ripe for increased monetization potential," Govil said.
