Block Enters Direct Competition with Visa and Mastercard Through ‘Neighborhoods’ Payments System

Jack Dorsey’s Block Inc. is taking aim at the dominant card networks by introducing a new payment system designed to eliminate intermediaries entirely. The company’s ‘Neighborhoods’ initiative allows small businesses to process transactions and run loyalty programs directly through Cash App, bypassing Visa and Mastercard fees. This model cuts transaction fees, offering sellers a 1% fee compared to typical 3%, while also supporting rewards programs for participating merchants.