Cash App users and non-users alike are taking notice after confirmation of a significant class action settlement involving the popular peer-to-peer payment platform. Cash App’s parent company, Block, Inc., has agreed to a $12.5 million settlement to resolve claims that unauthorized promotional text messages were sent to individuals without proper consent. While the company has denied any legal wrongdoing, the agreement opens the door for eligible individuals to receive cash payments, with some payouts expected to reach up to $147.
This article explains what the settlement is about, who qualifies, how much people may receive, and when payments are expected to arrive.
Background of the Cash App Text Message Lawsuit
The lawsuit was filed in Washington State and focused on Cash App’s referral and promotional text practices. At the center of the case was the app’s “Invite Friends” feature, which allows users to send invitations encouraging others to download and join Cash App.
According to the claims, promotional text messages were sent to phone numbers belonging to people who had never created a Cash App account and had not consented to receive marketing communications. Plaintiffs argued that this practice violated Washington’s consumer protection and privacy laws, which require clear consent before companies send promotional text messages.
Although referral messages often appear informal or personal, the lawsuit emphasized that messages generated or facilitated by a company can still be considered marketing communications under state law.
Why Cash App Chose to Settle
Block, Inc. has stated that it does not believe Cash App violated any laws or intentionally sent unauthorized spam messages. However, large class action lawsuits can be expensive, time-consuming, and unpredictable, even when companies believe their practices are compliant.
By agreeing to the $12.5 million settlement, Cash App avoided prolonged litigation and additional legal costs. Importantly, the settlement does not represent an admission of wrongdoing. Instead, it allows both sides to move forward while providing compensation to individuals who were allegedly affected.
Who Is Eligible for a Settlement Payment
Despite headlines suggesting payments are “for all,” eligibility is limited and specific. Not every Cash App user qualifies for compensation under this settlement.
To be eligible, individuals must meet all of the following conditions:
They lived in Washington State during the relevant period.
They received one or more Cash App referral or promotional text messages.
They did not consent to receive marketing or promotional text messages.
The messages were received between November 2019 and August 2025.
A valid claim was submitted before the court-approved deadline.
People who live outside Washington State are not included, even if they received similar messages. Likewise, individuals who agreed to receive promotional texts or failed to file a claim on time are not eligible for payment.
How Much Money Eligible Claimants May Receive
The total settlement fund is $12.5 million, but that amount does not go entirely to claimants. Legal fees, administrative expenses, and other court-approved costs are deducted first. The remaining funds are then distributed among approved claimants.
Based on court documents and settlement estimates, individual payments are expected to fall roughly between $88 and $147. The final amount each person receives depends on how many claims were approved. If fewer people qualified than expected, individual payouts increase. If more claims were approved, payments are distributed across a larger group.
This is why the payment amount is presented as a range rather than a fixed figure.
When Payments Are Expected to Arrive
The court granted final approval of the settlement in December 2025. With that step completed, the settlement administrator has moved forward with payment distribution.
Payments are expected to be issued in early 2026. Eligible claimants do not need to take any additional action at this stage. Funds will be sent using the payment method selected during the claim process, which may include direct deposit, mailed check, or digital payment.
Processing times can vary depending on the payment method chosen and individual banking timelines, but most approved claimants should receive their payment within the announced distribution window.
Why This Settlement Matters Beyond the Payment
While the dollar amount may seem modest on an individual level, the settlement carries broader implications for digital platforms and consumer privacy. Text messages are a powerful marketing tool, but they are also highly regulated due to their personal nature.
This case reinforces the principle that consent matters, even for referral-style messages that appear to come from friends or acquaintances. Companies that design or facilitate these systems are responsible for ensuring compliance with state and federal communication laws.
For consumers, the settlement serves as a reminder that legal protections exist when personal contact information is used without permission.
Common Misunderstandings About the Settlement
One common misconception is that every Cash App user will receive a payment. This is not true. Only individuals who meet the specific eligibility requirements and submitted valid claims are included.
Another misunderstanding is that this settlement is related to government payments or federal benefits. It is not. This is a private class action settlement between consumers and a corporation, approved by a state court.
Finally, the payment is not automatic for everyone who received a text. Filing a claim was required, and only approved claims will result in compensation.
What Eligible Individuals Should Do Now
For those who already submitted a claim and received confirmation, no further action is needed. Monitoring bank accounts or mail in early 2026 is sufficient.
Individuals who believe they may have been eligible but did not file a claim before the deadline are unlikely to receive payment, as claim windows in class action settlements are typically final.
Final Thoughts
The Cash App spam text settlement is a reminder of how digital convenience and consumer privacy can collide. While Cash App continues to be widely used and trusted, this case underscores the legal responsibilities that come with large-scale communication tools.
For eligible individuals, the settlement offers tangible compensation. For the broader public, it highlights the importance of consent, transparency, and accountability in modern financial technology.
Disclaimer:
This article is for informational purposes only and does not provide legal or financial advice. Settlement amounts, eligibility requirements, and payment timelines are based on court-approved terms and may vary. Readers should rely on official settlement communications or consult a qualified professional for guidance related to their individual situation.