Whimsy-Maxxing: How Cash App Continues to Cater to Timely Trends

As prices of everyday essentials go up, and luxury vacations and buying a house seem like an unattainable dream, consumers turn to increasing whimsy in their lives. This new trend, called whimsy-maxxing, mirrors a similar effect noted during the 2001 recession by an Estee Lauder chair when he saw an increase in lipstick purchases and called it the Lipstick Effect. In this case, the Lipstick Effect can be seen by an increase in small joys bought by consumers rather than spending on more expensive luxuries.

The Lipstick Effect does not necessarily predict a financial downward drift, as it really only emerges months after the fact, but it does point to an interesting trend currently emerging among younger generations and harnessed by influencers on social media. Gen Z, however, seems to take the Lipstick Effect to new levels as it continues to live in a state of financial insecurity with fewer young adults moving out of their parents’ homes and relying on a stable household to maximize the little luxuries in life, such as splurging on a fun drink at the bar or purchasing new makeup. All of this comes with the added factor of whimsy-maxxing, or increasing whimsy in everyday life. Scientific studies show increasing whimsy, or engaging in silly ways to shake off the everyday drone, can increase an individual’s oxytocin, decrease cortisol and create new pathways in the brain.

What does this mean for financial firms and the way they market to consumers?

Cash App has been capitalizing on younger generations seeking to imbue their lives and especially their financial lives with whimsy. In June of this year, the firm released Cash App Tags, physical keychains and items users can obtain to make purchases. Similar to contactless payment rings or other physical payment accessories, these Tags allow clients to make purchases without needing their physical card or in-phone wallet. The firm has thus far released three Tags: a mini card, a heart and a wand. Cash App further confirms the drive for releasing this visible payment token is a way to cater to Gen Z clients who Cash App found are 38% more likely to purchase collectibles, accessories and limited-edition items monthly.

Furthermore, Cash App offers fun and creative ways for clients to send and request payments. Users can customize the request screens with custom backgrounds, add stickers and overall personalize their experience.

As seen with other financial services firms, Cash App also allows users to create custom card designs. Several incumbent banks such as Wells Fargo, Bank of America and Capital One already offer this option for select cards. However, most limit the user to preselected designs or uploading personal photos. Cash App takes the design opportunities a step further by allowing the client to draw on and select from a collection of stamps to place on the card, emulating the joy of putting on physical stickers. Finance influencers have been personalizing credit and debit cards by putting stickers all over them since the whimsy-maxxing trend took off. Cash App continues this personalization trend by allowing clients to create completely personalized looks without the worry of stickers falling off or getting stuck in wallets.

Corporate Insight’s Fintech Monitor recently released a firm profile on Cash App as a way to view all the unique features Cash App currently offers to clients. For more unique perspectives and targeted projects, reach out to the Projects team at Corporate Insight to discover ways to home in on emerging trends.