The Cash App, which made a lot of noise in the summer, has again attracted public attention. The company has been testing stock trading for several weeks now. The new functionality will expand the target audience.
So Square compete with other players in a new market segment. One of the actively developing competitors is the fintech startup Robinhood Markets Inc. By launching commission-free trading, he aroused the interest of investors and millions of clients. His investor, among others, was a large American venture capital fund Sequoia Capital. Now the startup's valuation has reached $7,6 billion. In addition, Robinhood has launched options trading and margin trading.
The Cash App project began as a service that makes it easy to transfer money to friends, for example, for lunch. The Square Cash App now offers debit cards, a wide range of digital money transfer services, and the ability to trade cryptocurrencies.
In 2018, the audience of the service more than doubled and reached 15 million users. The company's crypto trading revenue in the first half of 2019 grew by 168% year-on-year. This affected the overall growth of its income: total revenue increased by 44% and reached $2,1 billion.
In its latest shareholder letter, Square said Cash App generated $135 million in quarterly revenue, excluding bitcoin trading. In July, the app hit record downloads with 2,4 million new users joining the service. In a note published this month, KeyBanc analyst Josh Beck wrote that Cash App revenue could reach $2 billion over the next three years.
The exact launch date for the new Square Cash App functionality is still unknown.
Source: 3dnews.ru