When you’re hot—you’re hot. That’s what Square is demonstrating with its recently announced results keeping the fintech on an upswing. Its merchant payments business is doing well, and significantly, Square is getting more volume from larger businesses that provide more long term stability to transactions.
Then its Cash App segment is finding more growth from wider adoption of digital wallets. Cash App has more room to run although it can be impacted by economic cycles and consumer spending. Not to be left out, there is Square’s expanding business of enabling users to buy and sell bitcoin in the Cash App.
The following excerpt from a Marketwatch article reports more on the topic:
Both sides of Square seem to be clicking as the economy strengthens, and now analysts are excited about the possibilities for Square as the company begins to connect its merchant and Cash App businesses together.
Though Square’s merchant and Cash App businesses operate separately, analysts have long been excited for the company to start driving links between the two entities, and the company gave a glimpse of that in its Thursday shareholder letter. Square discussed how, in the first quarter, it integrated its merchant loyalty program into the Cash App, so that customers who earn rewards shopping at Square sellers can manage their rewards from within the mobile wallet.
“We think one of our superpowers is the fact that not only do we have an ecosystem on the seller side that serves multiple verticals at once but we also have the buyer side in Cash App, and our goal over time is to realize more of these connections,” Chief Executive Jack Dorsey said on Square’s earnings call. He sees “a ton” of opportunities for links between the two businesses, also highlighting usage of Cash Card debit cards at Square merchants.
Overview by Raymond Pucci, Director, Merchant Services at Mercator Advisory Group