Cash App has launched a pilot program for sole proprietors, allowing them to sell goods and services directly through their personal accounts. The new tools require no separate business account and carry no fees for users.
The platform includes a dedicated Earnings Hub for tracking income. Cash App will issue a Form 1099-K only if a user exceeds $20,000 in earnings and completes more than 200 transactions within a calendar year, following IRS requirements.
Block, the parent company of Cash App, is currently testing these features with a select group of customers. The company intends to broaden access to these tools gradually as part of its strategy to serve independent earners.
The platform aims to capture a market of 125 million people, including hourly workers and independent earners. As of June, Cash App reported 59 million monthly transacting accounts, representing a 3% year-over-year increase.
The company also noted 9.4 million primary bank accounts, marking a 17% growth compared to the previous year. Additionally, Cash App recorded a commerce volume of $56.5 billion, which grew by 17% year over year.
