Cash App users can now send money to friends using installment plans.
The “Buy Now, Pay Later” (BNPL) method has been increasingly popular among consumers for everyday transactions. Now, Cash App is bringing the repayment plan option to its peer-to-peer (P2P) payment model, according to a press release on April 2. Powered by the app’s Afterpay feature, users can split P2P transactions worth more than $25 into installments. The recipient receives all of the money sent, while the sender retains the amount for an upfront fee. The sender can choose between weekly payments or a lump sum paid at a later date.
Afterpay, the sister company of Cash App, both owned by Block, has been a growing BNPL servicer. In 2025, the Cash App began offering installment plans for debit card transactions over $25, per a separate news release. Owen Jennings, executive officer and head of business at Block, sees the new BNPL feature as an expansion upon that.
“Millions of customers already use pay-over-time features within Cash App for card purchases. This expansion builds on that existing behavior by extending a familiar experience to more transaction types within the app,” he said.
The announcement of the new BNPL comes barely a month after Block laid off nearly half its workforce, as AFROTECH™ previously reported. The company plans to utilize artificial intelligence to replace roles, a theme that has been growing within the tech industry. Most recently, Meta shared plans to lay off nearly 200 employees and to lean more into AI tools for workforce capacity, per a separate AFROTECH™ article.
Buy Now, Pay Later Growth Raises Concerns
Buy Now, Pay Later offers consumers flexibility for everyday purchases, which can be useful, especially during economic hardships. But just like any other loan, it can become a problem when the debt grows. In a 2025 survey by LendingTree, 41% of people surveyed said they made a late payment on a BNPL plan, surpassing the previous year’s survey results of 34%. And 33% of those surveyed said they see BNPL loans as a “bridge” to their next paycheck, up from 27% the year before.
If excessive reliance and late payments with these installment plans become more consistent among consumers, that can put credit scores at risk. In June 2025, AFROTECH™ reported that FICO began including BNPL data into credit scores. And with Cash App’s expansion in the installment plan market, that risk could grow.
