Written By Square’s Cash App has experienced explosive growth over the past year, thanks in part to the success of Dorsey’s Block, a new feature that allows users to invest in stocks and ETFs directly from the app. The impact on the app’s user base and full-year outlook has been remarkable.
Since its launch in late 2022, Dorsey’s Block has quickly become one of the most popular features of Cash App, which now boasts over 40 million monthly active users, up from 30 million in mid-2022. The addition of investing capabilities has proven to be a game-changer for the app and has driven a surge in usage and adoption.
“Dorsey’s Block has revolutionized the way people think about investing,” said Jack Dorsey, CEO of Square. “We’re proud to have created a feature that makes investing more accessible to everyone.”
The impact of Dorsey’s Block on Cash App’s full-year outlook has been equally impressive. Square has upgraded its 2023 revenue growth forecast to over 50%, up from the previous estimate of 40%, largely due to the success of the new feature and the increased revenue opportunities it brings.
Square’s stock price has also surged in response to the success of Cash App and the introduction of Dorsey’s Block, reaching an all-time high of $330 in April 2023. This underscores the potential for growth in the mobile payment industry and the role that innovation can play in driving market expansion.
However, some analysts have raised concerns about the potential risks associated with the rapid growth of Cash App and increased competition in the mobile payment market.
“There are always risks associated with rapid growth and innovation,” said Avivah Litan, a payments expert and analyst at Gartner. “Square needs to continue to invest in security and fraud prevention measures to ensure that Cash App remains a trusted platform for users.”
As with any investment opportunity, it’s important for users to do their own research and seek professional advice before making any investment decisions. While Dorsey’s Block has made investing more accessible to a wider audience, it’s important to remember that investing always involves risks.
Overall, the impact of Dorsey’s Block on Cash App’s growth and revenue outlook is significant and highlights the potential for innovation in the mobile payment industry. By democratizing investing and making it accessible to all, Cash App is creating new opportunities for growth and expanding its reach beyond peer-to-peer transactions. As long as Square continues to prioritize security and user trust, the future looks bright for Cash App and its investors.
