Cash App has launched a pilot allowing eligible US sole proprietors to track P2P earnings and sell goods and services without fees through their personal account.
According to the official press release, the experience is currently limited to select eligible customers, with the company planning to expand access over time.
Sole proprietors who qualify can enrol in the earning experience from their existing personal account. Once enrolled, users can tag payers as customers and monitor their income through a dedicated earnings hub within the app. Cash App is not charging fees on eligible goods and services payments processed through this experience.
The feature has been designed to align with existing US tax reporting requirements. Under current Internal Revenue Service (IRS) rules, Cash App will only issue a Form 1099-K to a seller if that seller receives more than USD 20.000 and completes more than 200 transactions in earnings within a calendar year.
Positioning around non-traditional income
Cash App has framed the launch around what it describes as ‘Modern Earners’, a segment it says accounts for 70% of its monthly active customers. According to data the company has published, this group earns income through freelancing, content creation, hourly work, and gig work, rather than through a traditional salaried paycheque. In addition, Cash App has also stated that these customers manage an average of 2.7 payment channels to receive income, compared with a lower average among salaried workers.
Owen Jennings, Executive Officer and Head of Business at Block, said the new tool is intended to help this segment reduce the time spent tracking income received across multiple channels, and to manage earnings within a single account.
Context and implications
The pilot reflects a broader trend among payment platforms and fintechs adapting products to serve users earning through non-traditional or gig-based work rather than fixed employment. Through the process of keeping the feature within the existing personal account structure rather than requiring a separate business registration, Cash App is targeting individuals who may not otherwise register as a formal business but still need to track and report income earned through platforms or peer-to-peer transactions.
The link to IRS Form 1099-K thresholds also places the feature within ongoing US regulatory discussion around income reporting for informal and gig-based earners, an area that has seen periodic changes to reporting thresholds in recent years.
No timeline has been given for a full rollout beyond the current pilot phase. Cash App has indicated only that access will expand to additional eligible customers over time.
