We're gonna kick in and get started. First of all, I wanna thank everyone again for joining us this afternoon. I'm really happy to have Block with us and Owen Jennings with us as well. We also have Juan, who heads up credit and underwriting, as well as Matthew Ross from investor relations with us. Guys, thank you all for being with us. It's a name that we've spent a lot of our time focused on, really for many years. We did the IPO years ago, but it's totally changed over the years. It's become, you know, bigger and more interesting company over time. Let me start off with a quick legal disclaimer I have to read, and then we'll go into the questions. Just bear with me for 60 seconds.
During this conversation, Owen may make forward-looking statements, including about Block's expectations for its financial performance that are subject to certain risks and uncertainties. These statements are based on information available to Block, assumptions it believes are reasonable as of today's date. Block disclaims any obligation to update any forward-looking statements except as required by law. He may speak to a certain non-GAAP metrics. Please take a look back at Block's most recent filings with the SEC for a discussion of the company's risk factors. Reconciliations of non-GAAP metrics to their most directly comparable GAAP financial measure are available on Block's shareholder letter on its investor relations website. Further, any discussion on Block's lending and banking products refer to products that are offered through Square Financial Services or its bank partners. Okay.
With that, look, Owen, I mean, first of all, thanks again for being with us. It's as I mentioned, we're excited to have you. It's really an interesting time on the story. You've been at Block for a long time and business lead for almost two years now. So maybe just start off with what you see as different about the company now, and really after the last two years of you being in this spot, how things operate differently, you know, whether it's internally or not today versus two years ago would be a good place to start.
Sure. Thanks so much for having me, Darrin. Excited to chat. I think, yeah, so I've been at Block for more than 12 years. I started on the Square side of the business and led business operations as we were kind of like gearing up for the IPO, becoming more of a mature company, and then went over to the Cash App side in 2016. That's when Cash was like 25 people. It was just a peer-to-peer product at the time. About two years ago, we decided to functionalize the company. We used to have more of like a rigid business unit structure, and there were these harder lines between Square and Cash App and some of the other products that we were building.
I think that action, functionalization, actually probably is like one of the key things that feels different now. I would say that, you know, over the past 12 years, there's been probably, you know, several different chapters at Block. On the functionalization side, I think primarily what it gives us is just like the ability to have an overall Block view, an overall Block prioritization. It also lets us just like more flexibly move resources across projects. I think critically, you know, one of the kinda key parts of our master plan right now is connecting neighborhoods together and the Neighborhoods product. I'm happy to talk about that later.
Really, like functionalization was the big unlock, which is allowing us to build that product, 'cause we have to build in the Cash App code base, we have to build in the Square code base, we have to have a unified understanding of who a consumer is or who a buyer is. Then I think the second part is just around velocity. Like the primary drumbeat that I've had with the development teams is high quality, high velocity. I think that was true for all of 2025. It's even more true now with some of how these AI tools are flowing through.
Right now, what it feels like at Block is like more functional, more cohesive as like a unified singular company and moving more quickly, particularly with the flow-through from the AI tools.
Very helpful, Owen. Thanks. Look, just taking a recap of fourth quarter 2025 results. I mean, you had solid earnings with 24% gross profit growth, thirty-three percent growth in Cash App gross profit. Honestly, I think an even bigger headline was the 40% reduction in force. Maybe just starting there, given I know it's on some folks' mind, you know, just walk us through the decision-making process behind that reduction first, and we'll go from there.
Yeah. I think, I mean, obviously, I've been at the company for a long time. A number of the folks who we parted ways with were like longtime friends, longtime colleagues. These are like the toughest sorts of decisions. I think it was the right choice for us to make as a company for our customers and for our investors. I think fundamentally, if I think about the pace of progress from an AI tool perspective, I would say there was kind of a meaningful clip of improvement from like the start of 2025 through like, let's say, November of 2025.
In that era, I think we went from, especially on the development side, we went from like engineers writing code to like engineers using tools that would like help them auto-complete. You know, for less complex codebases, you saw like live coding flowing through. There was a fundamental change in like the last week of November, first week of December with like Opus 4.6 and Codex 5.3. We basically crossed the chasm where these AI tools clearly could write code that would pass the quality bar and that would pass human review. It was like a fundamental change. I think many of us spent like December and the holidays playing with these tools, applying these tools to our work and kind of understanding how that flows through.
I think we're feeling it kind of most acutely on the development side for engineering, for product management, and for design. I think the tools are flowing through just, like, across disciplines and across all of the workflows you have at a tech company. Like, from that perspective, you know, we basically had the decision of like, okay, we are in the process in Q1 of, like, fundamentally thinking about, like, how do we wanna structure the org? How do we wanna operate? What does a development team look like?
Like, are we shifting from, you know, the status quo of a few years ago of, like, 1 PM, 1 designer, 8-12 engineers focused on a roadmap in kind of a waterfall fashion to, like, two or three or four builders in a squad who can just go and, like, run at a problem and can be like 5 or 10x more effective because of the underlying tools. We had a pretty clear perspective on what we thought was gonna happen.
I think the decision was, we can hold off on this sort of change, or we can kind of take more of a proactive move from more of a position of strength. The business is doing well. I think that's the other part is that, like, this seems like a relatively sudden change perhaps from the outside, but for us, like, we've been building in this space and we've been applying these tools to our work for years and years.
Like, I was using Goose two years ago. That was, like, the first agent harness that was.
Right, right.
That was released, and we released it in an open-source way and, you know, co-developing the MCP with OpenAI and Anthropic. There's a lot of steps that got us here, but we felt like we were in a strong position to make this move. We think that just, like, the fundamental nature of how you build software and how you run a company is changing, and we didn't wanna be reactive five months, six months down the line or do this incrementally and have this hanging over our head for years and years. We made that decision.
What gives you confidence you can actually execute on your growth strategies, though, with only you know just over half your existing workforce?
Well, I think. Yeah. Great question. I think fundamentally, there's still this, I think, like, inherent perspective that the number of people working at a company is gonna be highly correlated with output. I think that basically is not true anymore. I think it was more true before, like, Claude Opus 4.6 and Codex and 5.3 and what we've been seeing the past few months, but I just, like, fundamentally don't think that's true. There's countless examples I can go through, but we're seeing small squads or small pods of individuals who are doing the work that, like, you would have otherwise thought a year ago would take dozens and dozens of developers. The very way that we approached this was like, it's incredibly nuanced, it's incredibly deliberate.
We had a few sets of principles that we wanted to work off of. First was reliability and stability, number one. The second is compliance and trust, number two, so it's like not take any risks there. Three is how are we, like, reliably delivering durable growth across all of our brands? We didn't go into this with some sort of number. Like, this was not a cost-cutting exercise. This was how do we design the org and operating model in the era of AI. That's how we were approaching it. We took a blank sheet of paper and we said, "Okay. Who do we need in order to make sure that we're gonna be stable and we're gonna be reliable?
Who do we need to make sure we're good on all of our regulatory requirements, our financial partnership requirements, etc. what teams do we need and how do we need to be organized in order to deliver the features and products that are on our roadmap? We pressure tested that and we, you know, we brought in the right people at the company, and we feel really good about the position that we're in. Like, if anything, our expectation is that we're gonna be moving faster from a product development perspective in the coming months and quarters rather than slower. I think that's the fundamentals. I had many conversations here today.
Okay
Where there's like this implicit assumption that like how can that be true? I think the paradigm has like completely changed over the past few months.
Just a couple of follow-ups on that. One is, I mean, when you say you pressure tested it, how could you do that before actually implementing change? I guess, was there an element of just, you know, you had maybe overhired a bit also, or is this how much of it was AI-driven versus streamlining the business?
Yeah, on the pressure testing side, I think there's a few different things. One is, like, unfortunately, you know, this is not the first time that there's been a reduction in force at Block or, you know, like in the tech space more broadly.
Even though the magnitude of this for all of Block seems large, there have been pockets of the company where this sort of thing has happened before. There's some pattern recognition there. I also think it's about do you have believable people who are in the know, who have all of the context and who deeply understand the business and who you're confident in their decision-making. I think that's a critical piece. This was not just Jack and his direct reports. There was a number of people who are working on this, thinking about this, who are deeply trusted, and there's obviously mitigation plans in place should anything happen. That's kinda the.
Pressure testing.
The answer to the first question. Sorry, remind me of the second question.
No, I was just trying to figure out on top of just, you know, pressure testing if there was excess in the company. I mean.
Oh, yeah.
Maybe you grew to a degree that had more h eads than body.
Yeah. I've seen the tweets and things like that. I don't know, I think that perhaps with some individuals there's this thing with Jack where Jack doesn't necessarily get the credit that he deserves. I mean, Jack invented X, invented Square, invented Cash App, invented Proto. I don't really understand that one, but I think there's a bit of a Jack overhang. I think if you look at basically any metric, like look at gross profit per FTE.
Right
I think you see that we were like above average, pretty reasonable relative to the peer set that makes sense. I don't hear the sort of complaints with other folks. If you look at like gross profit per employee in 2025 or now extrapolated for 2026, I think it's like world-class.
Yeah.
I think it's like NVIDIA and Meta or something. Moreover, I think if this actually were about whatever the claims are, like organizational bloat or over-hiring or whatever, I think you would've seen a different action. Like what we described was like this is a 40-ish% action at the Block level. It was more extreme on the development side, engineering, design, product management. That's not the sort of thing that's like correlated to like the bureaucracy and the bloat and what have you. It just doesn't add up and there's a bunch of folks who are chirping without context.
Okay. All right. That's really helpful, Owen. Thanks. Just shifting gears a bit, I mean, 'cause it was probably overshadowed by the RIF, but your underlying trends were really strong also. I mean, you talked about, you know, growth of 12% on GPV through February, mid-February, which was despite pretty tough weather. What's driving that? I mean, just give us a reminder of where you stand on that, and I know you've invested in sales in other areas, but-
Yeah
What's the latest update?
Yeah, we feel really good about where GPV growth is at. The basic way that I think about GPV growth is you have kind of new GPV that you're adding, and then you have kind of like the volume retention side, which is like same store growth and then subtracting churn. I think things feel good kind of across the board. We've massively ramped our go-to-market motion. Nick Molnar Co-founder of Afterpay took over sales and marketing a bit ago. We've been ramping field sales. We've been ramping ISOs. The self-onboard motion has been quite strong as well. A lot of the work that was done in the preceding months and quarters then like starts to flow through in Q4 and in Q1 and going forward.
You know, I think from a volume retention perspective, this comes down to like continued investments in how we think about support, concierge support, account management, pushing to reduce churn, but then also just like net new feature development. Like, new feature development is not only allowing us to win business, it's also helping us keep customers or grow with customers and capture a larger share of their wallet. Across t hat's kind of how we break down the GPV equation, but across the board, we feel really good, both in the U.S. and also internationally.
Do you have the products you think you need right now to meet the demand and really sustain the growth you've been seeing?
I think we definitely have the products right now to meet and sustain, but I think there's always opportunities to continue to grow. I think we've been really focused on the food and beverage space on the Square side.
Over the past couple of years, and there's a few more things that we wanna ship. I think, again, with these AI tools, it's becoming easier and faster to actually get these into market. We actually had a great example. We have a tool called Builder Bot, which you can imagine is like a, it's like an internal version of Claude Code, but it's built on top of Goose. We actually fed Builder Bot like one of the key feature requests we were getting from the sales team, and Builder Bot just like built the whole thing, and it's like it's in prod.
I think there's more examples of that, and then I think we need to continue to work through vertical by vertical. Like, there are still gaps with FSR. There are still gaps with retail. There are still opportunities with services. Like, I don't think that's preventing us from getting to like the kind of long-term guidance we had around like the, you know, you know, like the mid-teens GPV growth kind of long-term thing. I think, we're just gonna continue to build, and hopefully that compounds positively.
On that note, I mean, AI, is it gonna help with, you know, feature parity that you guys can offer into new verticals beyond obviously the restaurant area? Just help me understand kind of where you're utilizing it.
100%. I mean, we're using it everywhere, and it's not really as a tool. It has fundamentally changed the workflows for how we develop over the past several months. As I said, it's been compounding for years and years, but in particular, things feel way different over the past few months. It's not just on the Square side and like point-of-sale features, it's like everything that we are building, not only at Block. Like if the tools are there. If you are on the tools, as we say internally, like this is meaningfully compressing the time required in order to build software.
We're having certain instances now where like it used to be the case that a lot of the time software development was actually the long pole to like get something in the market. We're increasingly seeing now, like Juan spins up a quick feature, and then actually the long pole is like having a conversation with the partner or going through like legal and compliance or doing the modeling on how we should price the thing or what have you. That's like a paradigm shift where like you could now just have dozens of agents like working on your behalf, and that is now the workflow, and the software is being created. Now we need to like curate that. We need to edit that. We need to do code review.
Anyway, long, long way of saying, yes, it's gonna speed everything up.
Shifting gears to Cash App, I mean, it's been showing outstanding growth. Some of it is obviously Borrow driven, but even without Borrow, you've seen the non, let's call it non-Cash App Borrow Cash App growth accelerate to what we calculated almost 15% growth at this point, +14%. Starting with Borrow for a moment, I mean, it's been a big part of the growth story in 2025 and now into 2026, and a lot of that has to do with also the migration to Square Financial Services.
Yeah
Right?
Yeah.
Just how sustainable are these levels of growth that you're seeing in Cash App? With Borrow, but even excluding Borrow.
Yeah, so I don't love the breakdown of like lending growth and non-lending growth, because I think it's too coarse of a view. Like, on the non-lending growth side, there's just a number of different drivers with like different idiosyncratic things happening, where you have like primary banking actives and direct deposit actives and Cash Card spend growing in that like 20%-ish range. And then you have certain areas where like we're making strategic decisions like, for instance, Bitcoin, we're like choosing to monetize less there, and so that's gonna be a drag. Or Cash for Business, we're less focused on that exact product type. That's gonna be a drag. The core growth of Cash App we're really happy with, so like network expansion has been our number one focus. We've seen really healthy acceleration there.
We added 1 million in September, then we added 1 million again in December, and we think there continues to be like a number of tailwinds there. On the primary banking active side, I mean, Cash App Green was launched in mid-November. I think the print in December was really strong. I think it's clear that it's like really resonating with our customers. Even on the Borrow side, like there's definitely kind of an idiosyncratic boost that you get when you like migrate over to SFS.
I think there's so much opportunity for us to sustain, especially when I think about like the consumer credit product suite overall, where you have Borrow and all the different ways that we can, you know, continue to improve upon Borrow. We also have Afterpay on Cash App Card post-purchase, which is doing phenomenally. We have Cash App Afterpay applied to peer-to-peer, which like just rolled out, like, you know, several weeks ago, which is doing quite well. We also just rolled out Afterpay on the Cash App Card pre-purchase in alpha or beta, a few weeks ago. You know, I think one of the areas where we've demonstrated like really meaningful market fit is just like simple access to liquidity. That's what so many Americans need and what so many Americans rely on us for.
I continue to think that we're gonna see strong growth both for like the kind of core ecosystem, as you said, and all of these non-lending products, but then also our consumer product or our consumer credit products as well.
I mean, if we talk about on that note, the MAU growth rate, the potential to grow actual monthly active users, you know, you've had, I think it was already since early 2024, it had been relatively flat, right, for a while.
Yeah.
The third quarter this past year, this past third quarter, we saw it start to inflect and grow again. It grew once again in the fourth quarter, and you talk about it growing low single digits now. Help us understand your ability to sustain that. I mean, you're at almost 60 million users already.
Yeah
Monthly active users, which is not a small number, so the ability to keep that going.
I think there's still room to go. I think I would break it down into kind of some of the more kind of near-term tactical things, and then perhaps some of like the bigger bets. On a short-term basis, one thing I wanna call out is, you know, we report monthly actives. I look at so many different metrics for like daily actives, weekly actives, quarterly actives, the ratio between those things, how it looks by platform, by geo, etc.. Trends are looking healthier and healthier. I think we still have an opportunity to convert quarterly actives and annual actives into monthly actives.
Right.
There's a bunch of headroom there, and it's not necessarily like a lapsed or churned customer. It's just if you go from sending four peer-to-peer payments a year to using the Cash App Card, then you're gonna go from being a monthly active 4 times - 12 times. So there's a big opportunity there. Again, continue to focus on what we call like network enhancements, so there's all sorts of flows with millions of people going through them. There's all sorts of areas where we can reduce false positives, make sure that it's as easy and simple as possible to use Cash App, continue to invest in go-to-market, lifecycle paid. That's all kind of bread and butter. I think longer term, one of the I think maybe two things that are probably I'm most excited about.
One is Neighborhoods. I think Neighborhoods has the ability to drive like a step function change in actives growth for Cash. I wanna get to the place, and I think we're like just on the verge of the place, where Square is the biggest strategic advantage for Cash App, and Cash App is the biggest strategic advantage for Square. I think that's really exciting. Again, that's like core to like our overall strategy. I think Moneybot. Moneybot, we're actually this week we're in the process of rolling out Moneybot to more and more customers. I think there's nothing else like this in the consumer fintech industry. I like to think of it as like having a protector or a CFO in your pocket. I've been using it for months and months.
We're not even talking about monetizing Moneybot yet.
You can imagine that being a meaningful driver of just like a new way of thinking about your finances, a new way of interacting with your money. I think that there's some of those longer term bets as well that should be tailwinds for network expansion for years to come.
Yeah, you put it all together, I mean, you have effectively MAU growth in the low single-digit percent, which you feel, you sound pretty confident around based on.
Yep
You know, harvesting more of the quarterly or annual actives and more areas that probably haven't been really tapped yet. You have Borrow driving a lot of inflows, right? It's not just a product in itself, it's actually driving the ecosystem to some degree as well. And then you have incremental banking products, right? You put it all together, is that gonna drive the organic trends? Again, putting aside just the lending-oriented aspect of it to, you know, does that give you confidence in sustainability or am I missing new products?
We feel good. I mean, look, we're gonna continue to roll out new features and new products. I think we've had a strong track record of doing that. I mean, when I joined Cash App, we were basically just a peer-to-peer app, and then we've basically rolled out a new major financial service every like 12-18 months, whether it was like the card or Bitcoin or stock investing or what have you.
Yeah, product velocity was high.
We'll continue to invest. I think, you know, there's a number of things that we haven't talked about around like the Cash App Score. I think is gonna be like a complete game changer for our customers and for like the underwriting industry overall. I think the connectivity between Afterpay and Cash App and how we're sending Afterpay customers into Cash App, Cash App customers into Afterpay. I guess the broader point is like fundamentally this is an ecosystem. Internally we talk about like we wanna build a financial operating system for the next generation. There's gonna be more and more products and features that we can build that capture a larger share of a given customer's wallet.
Like, right now, I mean, I guess I would say the proof is in the pudding. We have millions and millions of customers who are choosing Cash App as their primary financial institution, who are choosing to earn green, whether that's through, like, depositing their income, or it's through using Cash App Card and bringing that to top of wallet. I feel really good about where we're positioned, again, like, there's always more to build.
You have accelerated growth in GPV. It sounds like there's conviction around the NVA there, obviously supporting where to go. You obviously have really good momentum on Cash App Borrow, but even without Borrow, obviously MAU growth. For a pretty long time, we've been wanting to see the ecosystems connected.
Yeah
You brought up Neighborhoods, right? Can you just start, take a step back, and maybe explain to the audience one more time what your goal is with Neighborhoods?
Yeah.
We could just touch on has there been any traction, any evidence of success, merchant feedback or trends showing signs that it's going well?
Yeah. I think that I'm glad to spend the time 'cause I think this is, like, probably the most important thing that we're building right now across the entirety of the company. The main thing that a seller says when you talk to a seller, like a small business, is, "I want incremental growth." The environment that they have to operate in is. It's not great.
Basically to get incremental growth, either they're paying, like, a large share of their tickets to, like, the DoorDash and the Uber Eats of the world, and then you kinda get addicted to that thing, and then you can't get off of it, and then if you do, like, growth comes down, or they're up against, like, a more established, larger, let's say, quick-serve restaurant like a Starbucks or a Burger King or a McDonald's who has, like, a tech team and has their own app and has their own life cycle marketing and what have you. The basic question for us is, like, how do we give those same tools to every small business who's using Square? That's what we've built with Neighborhoods.
I mean, I can show you after on my phone, but essentially, let's say I run a bagel shop in New York City, Owen's Bagels. You come in, we'll give you, like, a $1 million reward that you can claim within Cash App. It'll say, like, "Hey, Darren, here's $3 million. Download Cash App in order to claim it." What we're seeing right now is, like, when people go through that flow, about half of them are, like, existing Cash App customers, and half of them are new or lapsed customers. Pretty meaningful in terms of the ability to drive acquisition, and we're seeing really strong attach rates as well. Like, for every buyer who's presented with that flow, it's about, like, you know, 5%-10% attach rate.
From a seller's perspective, they're then gaining a follower, so now I have the applet in my Cash App where I can see Owen's Bagels, and then the seller has the ability to send them marketing campaigns, send them offers, send them discounts, connect with them. The same sorts of tools that, you know, the mega quick-serve restaurants and full-serve restaurants have. You know, the seller is getting incremental growth. There's a bunch of other benefits too. They're only paying 1% 'cause our, like, our cost of funding is lower. Anyway, there's a bunch of benefits for the seller that we're able to offer, and then on the consumer side, they're getting rewards in the form of local cash into their Cash App, and they're getting, like a seamless checkout option directly from Cash App.
We've spent a lot of time focused on this problem. Brian Grassadonia, who used to be my boss, was the CEO of Cash App.
Yeah.
This is, like, one of his primary focuses is, like, connecting these two parts of the ecosystem. We've been testing in certain geographies, making sure that the flows are right, the conversion rates are right, and, like, it is working. It is an incredible product, and now the focus is just on scale. About, like, three weeks ago, we shifted our onboarding motion from something that was, like, inbound and, like, quite operationally intensive, where, like, someone on the account management team would have a conversation with the seller. Now we have auto-enablement, and we're able to take a cohort of sellers and turn Neighborhoods on for them. We've done that a few times.
We've seen that the retention rate for sellers who like stay in the program is like 75%-80%, so it's like quite strong relative to expectations. Now it's just about like going through this motion and getting more and more locations who are on Neighborhoods, and we have an understanding of how that's gonna flow through into the attach to Cash App and then the subsequent attach to commerce. I'm like incredibly excited about this. The key question that I've got today is like what is different now. Like Block has tried to do stuff like this before. I think there's two key things that I would call out.
One, in previous worlds where we've built kind of the consumer side of the Square network, we weren't in a functional org model, and so we had these, like, really strong boundaries and lines between Cash App and Square. We needed to do that functionalization about 18 months ago in order to be able to build and get where we are. Second is scale. I think, like, there's not a question of if there's a buyer base, if there's a consumer base. We have, you know, tens and tens of millions of customers who are using Cash App, and so now this is just about, like, what is that flow at the point of sale, at the point of purchase, where you're able to connect.
Right
The buyer with the seller.
Yeah. I mean, right now I think you were in a few markets, right? You were testing and, you know Portland was one, but, there's a few others. I mean what's the trajectory? I don't know if you wanna. You don't have to be so precise, but just a sense of where you hope to be over the next 12 to 18 months on this.
Yeah. I mean, I hope to be at, like, a way larger scale. I think right now there's, like, a perfect customer on the Square side for the Neighborhoods product. It's, like, someone who has Square Register, which is, like, you have a seller-facing display and a buyer-facing display on the hardware. Someone who's already used to selling online, and so you have, like, your catalog set up, etc.. That's a very large number in itself, and so that's, like, the first target, and we'll probably do testlets, like a combo of just, like, auto-enabling and rolling out, and then also, like, a geo-based approach both for the seller side and the consumer side.
I think over time you start to have the conversation of, like, how do we get this out just, like, This is just like default on, and so it's like regardless of hardware type, like what does that thing look like? How does like the in-store redemption thing look like? What could this possibly look like internationally? Like all of these things.
Right.
Like, we are investing really meaningfully in this. As I said, like, this is like one of the core pillars for like the overall business strategy. 'Cause I think then once you actually do this, once you actually have like a meaningful share of local economies running on Block, then you're able to do things like, you know, meaningfully reduce costs for sellers or meaningfully increase rewards or meaningfully increase your reliance on certain parts of the legacy financial system. This is something we're really committed to.
Right. No, that sounds really encouraging. I mean, you obviously could drive more MAUs in a pretty material way also. Just last one for me, and then maybe we'll take one or two questions. Pricing, you know, we noticed a few pricing changes over the past month or so with some increase to Cash App instant deposit that we wrote about. I think there was some on cross-border transactions as well. Just how are you thinking about pricing going forward? I know there was also, you mentioned even somewhat of a reduction on the Bitcoin side.
Yeah.
Just a sense of the overall environment.
I think I'll take the Bitcoin one separately because I think that's a little bit of a different flavor. By and large, across all of the other pricing adjustments on Square, Cash App, etc., I see that as like an always-on motion. Basically, like we're constantly tuning knobs and twisting dials for how we think about the value exchange with customers. Like for instance, on the Cash App side, we launched Green. With the launch of Cash App Green, that means we're offering Borrow to more customers, higher Borrow limits, we're giving people free ATM transactions, we're giving people free paper money deposit, etc.. We might like twist a knob or tune a dial somewhere else to monetize more in a place that's strategic.
The same thing on the Square side, like we'd launched pricing and packaging, or as, you know, internally we call it PnP. We're gonna continue to kind of twist knobs there and make sure like should we add another tier? Should we change the eligibility for this? Should we change the limit for this? I think pricing is one of those things that you can constantly be iterating on, constantly be testing on, and we wanna make sure that we're kind of at that efficient frontier of like where we're monetizing, where customers are finding value, and kind of like maximizing the business results. On Bitcoin in particular, I think this was a bit more idiosyncratic. On the Bitcoin side, I think we kind of lost our position. Like we were the first public company to launch Bitcoin buy sell.
We were the cheapest, we were the simplest, we were the easiest. We kind of had like a really strong market fit there. Over the years, for a number of reasons, like Bitcoin got more expensive on Cash App, it was harder to use, limits were more restrictive, and so we're really trying to get back to that place where we are the market leader, at least for like the average customer in the U.S. Maybe not like you know, the super advanced, super high volume trading platforms. For the average customer, it should be very obvious that you're going to Cash App for Bitcoin.
Very helpful. All right, guys. Why don't we see if there's any questions from the audience, and I think we have time for maybe one or two. There's one in the back.
Thanks very much. A question on the, you know, you talked about meaningfully reducing costs for sellers, right? As you connect your buyer and seller ecosystems, are you starting to see that already come through for sellers, and how does that affect your margins, especially in the face of A2A payments, you know, non-card payments as well?
Yeah, I mean, the primary thing that's happening now is Cash App Pay. We have Cash App Pay, and Cash App Pay is rolled out to a number of sellers. It's also like the primary way that you pay for something through the Neighborhoods product. Because of the share of Cash App Pay transactions that are funded through stored balance, we're able to reduce the fee that a given seller pays. I think roughly 70% of Cash App Pay transactions are paid via stored balance. Let's say that there's a given seller who would be paying like a 2.5% swipe rate for like a given card. Right now we're saying, you know, we can offer you Cash App Pay transactions for 1%.
Like as we see more and more of that and as stored balances evolve and so on and so forth, you could see us like lowering that even more. Then like for a given seller who's on Neighborhoods, I think like one of the key questions is gonna be like what share of their volume is coming from followers, like is coming through the Neighborhoods program? If that percentage is like reasonably high, you can see this just being a complete game changer for sellers because, one, they can have a reasonably large share of their transactions that are at a lower cost. That's like huge and blends down.
Too, like if a good share of your GPV is coming through Neighborhoods, then you're really gonna wanna invest in outreach to your buyers and like use the marketing tools, use the discounting tools, loyalty tools, etc., in order to drive your business forward. I think Cash App Pay is probably just the start. I know you mentioned A2A and other things. I think there's no shortage of things that we can do because of the position that we're in on both sides of the counter with these face-to-face transactions. I think about Bitcoin. I think about stablecoins. I think about agentic commerce. Right now, I think Cash App Pay is like the most meaningful manifestation of this dynamic.
All right. Any other quick ones? All right. Why don't we leave it there, Owen? Thank you so much.
Thanks, Darrin.
A very helpful conversation.
Appreciate it.
Exciting times ahead, guys. We have a crypto panel up next, starting in about four minutes.
Thanks.