Block Expands Square Restaurant Push Across Cash App
Block launched Neighborhoods in October 2025 to connect Cash App’s 59 million monthly users with local businesses among the roughly 4.5 million merchants that use Square. The service lets consumers discover, follow and order from nearby restaurants while paying through Cash App. For merchants, it combines ordering, payments, marketing and loyalty tools in one system, offering a lower-cost sales channel and an alternative to delivery platforms such as DoorDash, Grubhub and Uber Eats.
Block said on Aug. 25, 2026, that it added 30,000 Square restaurant merchants to Neighborhoods, though it did not disclose the network’s total enrollment or payment volume. Cash App customers account for about 10% of a participating seller’s gross payment volume after roughly nine months, on average. Neighborhoods orders carry a 1% processing fee, about half Square’s standard rate, while users can earn Local Cash worth as much as 10% of an order, capped at $10. Block funds the reward for 12 months.
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The history behind this eventBlock Raises 2026 Outlook as Cash App and Square Power Growth
Block operates two complementary payments ecosystems: Square serves merchants with point-of-sale, software and financial tools, while Cash App has expanded from peer-to-peer transfers into banking, investing and lending. Their simultaneous growth matters because it shows the Jack Dorsey-led company can deepen monetization despite high borrowing costs and cautious discretionary spending. Block has also embedded AI across engineering: its tools reviewed more than 90% of production code changes in early April, lifting development speed and supporting wider margins.
On Aug. 5, Block reported second-quarter results for the three months ended June 30. Revenue rose to $6.62 billion, adjusted operating income reached $864 million and adjusted EPS was $1.02, beating LSEG’s 87-cent estimate. Cash App gross profit jumped 31%, Square payment volume advanced and adjusted operating margin widened to 27% from 22%. Block raised its 2026 gross-profit forecast to $12.51 billion, or 21% growth, from $12.33 billion and 19%. Weaker bitcoin conditions remained a drag, including an $88.5 million remeasurement loss.
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