Cash App Delivering Government Stimulus Payments

Cash app has exploded in popularity over the years, but they do not hold the validity limit, at least in the eyes of the federal government, of Cash App Direct Deposit Stimulus Checks.

They are hoping to replace this with the government’s new Cash App Direct Deposit Stimulus package, and are being touted as a public campaign for the Treasury Department to pay Americans directly.

Amid that effort, the parent companies of the two apps have held talks with Treasury about the possibility, two sources in the electronic payment industry told CNN Business, though it is unclear how seriously Treasury is considering it. The Treasury Department did not respond to CNN’s request for comment.

Advocates for electronic payment services argue that they provide a faster way for Americans to receive incentive dollars than sending checks by mail.

Many of those receiving direct funds from the $ 2 trillion incentive package signed into law on Friday will receive their payments through direct deposits; Treasury Secretary Steven Menuchin has indicated that the first payment will go to people whose bank information is already on file with the Internal Revenue Service for tax purposes.

But not everyone can get their money through cash app direct deposit. According to data published last year by the Federal Reserve, fourteen percent of Americans with incomes below $ 40,000 do not have a bank account. The Cash app can be used by Americans, even if they do not have bank accounts.

Jack Dorsey, the founder, and CEO of Square, the owner of the cash app, on Thursday publicly appealed to the US government, tweeting, “People need help right away. Today most people (even those without bank accounts ) There exists technology to get money.). Squire and many of our partners can get it. US Government: Help us. “

Dorsey is also the co-founder and current CEO of Twitter.

Even though the Treasury Department decided it wanted to use the payment application, it would still face a major hurdle to do so – a major goal of the government’s stimulus efforts to get Americans to pay as soon as possible, It may be at odds with any attempt to introduce a new payment mechanism.

“I think it’s an interesting way to reach people who may not have traditional bank accounts,” Erica York, an economist at the Tax Foundation, told CNN Business on Friday. “However, while I do not know everything necessary to make such a partnership, it may not be possible for the government to enter into agreements that match the data, and all other steps for which one It will be necessary to use the app Recovery will take to process and send it directly, compared to any faster discounts. “

He said, “I think one of the challenges that come into play here is finding out who gets the exemption and what size they get, which isn’t an issue that the app-based service will have data. “

The government also has the challenge of obtaining funds for those who did not earn enough money to file tax returns.

Currently, the IRS states that sign-ups are not required to receive incentives. It is going to rely on the cash app tax returns of 2019 and 2018, and will then use Social Security benefits statements as a backstop, and use whatever bank account or address is on file.

The Cash app provides users with debit cards, meaning that one of those cards users can use the money transferred to their accounts to pay for products and services. When asked for comment, a Cash App spokesperson pointed to Dorsey’s tweet to CNN Business.

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Cash App Delivering Government Stimulus Payments

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