Block's digital wallet, Cash App, has launched a $25 NFC payment accessory called the "Wand." Users can link it to their Cash App Card to make offline payments at merchants that support Visa contactless payments. The company says this is just the first product in a new batch of payment tag hardware, with more models to be released in the coming months.
Can be linked to Cash App Card for use
The company stated that the payment tag must first be linked within the app to a Cash App Card. Once activated, users no longer need to maintain a minimum balance to make payments at Visa tap-to-pay compatible terminals using this accessory.
After payment is completed, users will receive an instant notification and can lock or unlock the tag at any time within the app. If the device is lost, users can deactivate it directly within the app. Cash App also stated that it will monitor for fraud in payments completed via the tag.
Targeting lighter offline payment scenarios
This accessory comes with a key ring that can be hung on a bag or clipped to clothing, primarily targeting payment scenarios where it's inconvenient to take out your phone, such as concerts or sporting events. Cash App aims to transform the payment process, which was originally hidden in a phone or wallet, into a more intuitive, portable hardware experience.
From a product design perspective, this type of hardware is closer to wearable payment accessories than a replacement for traditional bank cards. Its core selling point is not adding new payment capabilities, but making contactless payment a physical entry point that is easier to display, carry, and access.
More versions will be released this summer.
Thomas Templeton, head of hardware at Block, stated that digital wallets are typically "invisible," and physical cards are often stored deep within wallets, while payment tags offer a more visible payment method. The company believes that these products have the potential to make payment behavior more visible and social.
Cash App stated that it will continue to launch more tag products in the coming months, including limited editions, and plans to make some styles available for long-term sale this summer. The company has been expanding its product line in recent years to target younger users, having previously launched teen accounts and parentally controlled children's debit cards.
