Cash App has launched a new “pay-over-time” feature that allows users to spread their everyday transfers over an extended period. To use the service, customers pay a 7.5% fee and can repay amounts of $25 or more in weekly increments over six weeks.

The move follows a trend seen by companies like DoorDash partnering with Klarna for similar services. However, Cash App’s feature is expanding flexible financing into the peer-to-peer payment realm. Critics warn that such services could lead to financial trouble, while proponents argue they offer necessary flexibility for modern workers.

Block's Owen Jennings sees this as a way to add value through cash flow management, pointing out how more people now work in variable-income jobs. The new feature allows users like solo-preneurs and gig workers to have the funds they need without immediate payment pressures.

The service comes with built-in protections, such as non-revolving loans, which aim to prevent debt spirals. It also builds on existing services like Borrow and Afterpay for Cash App Card. However, the rising popularity of “buy now, pay later” has sparked concerns about consumer debt cycles and broader economic issues.