Block Adds New Incentives to Draw Customers Away From Card Networks

Core Insights - Block is introducing new features in its Square and Cash App brands aimed at reducing fees charged by card networks [1][2] - The company is offering a payment processing rate of 1% for local businesses using Cash App, significantly lower than the typical card network fees of up to 3% [2] - Block's new product, Neighborhoods, is designed to incentivize consumers to use Cash App by offering rewards, which are partially subsidized by Block [2][3] Group 1 - Block CEO Jack Dorsey highlighted the growing frustration among sellers regarding credit card fees relative to the value received [3] - The Neighborhoods program aims to change consumer shopping habits by connecting Cash App users with Square merchants [4] - Neighborhoods provides sellers with a branded storefront and features for consumers to order ahead, earn rewards, and stay connected [5] Group 2 - The new features announced at the Square Releases event also include enhancements to Square's AI capabilities, voice ordering for food and beverage, and support for bitcoin payments [6]