CashApp has shocked users with new lower limits.
Users suddenly found their sending/receiving limits reduced to just £100 per month (down from £1500 and £10,000 per week) and balance limits reduced to £500 from £10,000
While there were initial fears this was further restriction on those in the adult industry, the changes appear to be rolled out for all users.
No explanation or communication has been available from CashApp for this change.
CashApp has, however, been in the mainstream press in both the UK and US as, along with Venmo, been listed as an app which lacks the protection of conventional banks. For example, if the firm were to run into financial problems, users would lose any balances they held and/or be delayed in access to funds.
When this fear has existed on conventional banks it’s caused a run on the banks. In the UK a recent example is Northern Rock in 2007. However, in March 2023 the $42bn run on Silicon Valley Bank was the largest bank run in history.
The send/receive limits may very well be an attempt to stave off a run on CashApp.
Whilst not targeted at those in the Industry, the restrictions are certainly a blow. Many people rely on CashApp, especially due to the ability to send and receive anonymous payments.
It also puts doubts on other unregulated finance options such as crypto. Users again would not be protected by a run or sudden drop in value.
At this point. It is always important to be wary of those giving financial advice who are not qualified to.
However what some workers do for anonymous payments is use a bank account in a business, or performer name. Others take payments via tips on assorted clip, cam and membership sites.
We unfortunately are not qualified to give advice, so please speak to an accountant or qualified financial advisor.