Square’s Cash App has seen a surge in growth following the introduction of Dorsey’s Block, a new feature that allows users to invest in stocks and ETFs directly from the app. The move has been a game-changer for Cash App, which was previously used mainly for peer-to-peer transactions.
Since the launch of Block in late 2022, Cash App’s user base has grown rapidly. According to Square’s latest earnings report, the app now has over 40 million monthly active users, up from 30 million just six months ago. This represents a significant increase in user adoption and highlights the success of the Block feature.
The full-year outlook for Square has also been boosted, with the company now expecting revenue growth of over 50% for 2023, compared to its previous estimate of 40%. This is largely due to the success of Cash App and the increased revenue opportunities that come with the introduction of Block.
“Dorsey’s Block has been a game-changer for Cash App,” said Alyssa Henry, the executive in charge of Square’s seller business. “It has opened up a whole new revenue stream for the company and made investing accessible to a wider audience.”
The success of Cash App and Block is not just good news for Square, but also for investors. Square’s stock price has soared in recent months, reaching an all-time high of $330 in April 2023. This is a significant increase from its pre-Block levels and highlights the potential for growth that Cash App and its features offer.
However, there are concerns that the rapid growth of Cash App could lead to increased competition and regulatory scrutiny. Some experts have warned that the app’s success could attract new entrants into the market, which could ultimately lead to a fragmentation of the mobile payment industry.
“There’s no doubt that Cash App has been a game-changer, but we also need to be aware of the potential risks that come with rapid growth,” said Richard Crone, a payments expert and CEO of Crone Consulting. “Regulators will be watching this space closely, and there’s always a risk of increased competition.”
As with any new feature or product, it’s important to note that investing always involves risks and that users should do their own research and seek professional advice before making any investment decisions. It’s also important for journalists to highlight any potential downsides or criticisms of new features, even if they seem overwhelmingly positive at first glance.
Overall, the growth of Cash App and the success of Dorsey’s Block are significant developments for Square and the mobile payment industry as a whole. By democratizing investing and making it accessible to all, Cash App is tapping into a growing market and creating new opportunities for growth and innovation.
