Block's Cash App Neighborhoods May Reaccelerate Monthly Active Users, RBC Says

11:46 AM EDT, 10/21/2026 (MT Newswires) -- Block's (XYZ) Cash App Neighborhoods promotional rewards program may reaccelerate the company's monthly active users, RBC Capital Markets said in a note emailed Wednesday. The project may also "drive deeper seller engagement and retention" and "unlock cross-selling opportunities" inside Cash App, the note said. RBC said, however, the program will likely have a longer-term payback period compared with standard Cash App marketing spending and will see a more gradual growth curve in 2027 and 2028. The "interoperable design of Local Cash is a meaningful consumer value proposition" as Local Cash can be redeemed in any participating Square merchant, which means the program works more like a network-wide cash back program than a merchant-specific loyalty plan, the note said. The key variable to monitor is whether the reward rate will stay "sufficiently competitive with credit cards and other rewards constructs to sustain consumer engagement at scale," the investment firm said. RBC has an outperform rating on Block and $95 price target. Price: 78.96, Change: +0.86, Percent Change: +1.09