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.
The information used in compiling this document has been obtained by Third Bridge from experts participating in Forum Interviews. Third Bridge does not warrant the accuracy of the information and has not independently verified it. It should not be regarded as a trade recommendation or form the basis of any investment decision.
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