Research
Interview Synopsis

Square – Cash App growth trajectory & transaction volume outlook

  • Multi Asset
  • TMT
  • Europe

Square, founded in 2009, provides technology for merchants, from point-of-sale solutions to online tools. The company has branched into numerous other areas, and notable among these is mobile payment service Cash App. A former strategic executive from the business took Third Bridge Forum through Square’s operating environment and the outlook for its various services.

Click on the hyperlink below to access the full Forum transcript.

Myriad trends shaping Square’s financial offerings

The Interview started with the main trends for the two primary divisions within Square, merchant and consumer. For the former, the specialist highlighted the “continued penetration of middle America” and “the ability to move upmarket and provide a slew of very sticky services” to businesses starting to upscale. For the latter, the continued movement towards mobile wallets and Square’s focus on “geographies that are generally overlooked by any of its competitors” were noted.

When asked if more established players like Ingenico and Verifone could challenge Square, the former strategic executive explained that it was “something I worried about when I first joined Square, but over time I just saw that it’s not possible.” One reason for this conclusion is the tech debt with established codes that these larger companies have amassed. Although Square has also had the same issue, it has been “working heavily” towards redeveloping its payment stack.

Turning to the topic of Cash App, an evaluation of their offering versus the competition – such as Chime and Venmo – was discussed. The specialist also highlighted further monetisation opportunities for this service, including Boost, which could be  a “game-changing factor”. Finally, whether M&A could be on the cards, including what types of entities, and the longer-term outlook for Square rounded off the discussion.

To access all the human insights from Third Bridge Forum’s Square – Cash App Growth Trajectory & Transaction Volume Outlook Interview, click here to view the full transcript.

 

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