Square’s Problem Solver
Square (NYSE: SQ) is a Fintech leader which provides hardware and software solutions to small businesses and individuals.
Square’s Cash App solves a variety of problems. It’s a platform to send and receive money, collect paychecks, buy assets like stocks and cryptos, and get a customizable debit card. The customizable debit card encourages spending through “boosts” provided on the platform by giving discounts to users. They also have small business payment terminals which conveniently interact with all their other products and services creating a flourishing ecosystem.
Fair and Square
Square is disrupting the financial banking industry like no one else before, completely reshaping the standards which individuals expect, and actually deserve.
In 2016, Cash App had only 3 million Monthly Active Users (MAU’s). Today, Cash App has more than 36 million MAU’s and is continuing to grow. There is no sign of slowing down as SQ continues to innovate and acquire Cash App customers at less than $5 per user compared to the financial services industry average of $1,202 and yes, you read that right. They have such great marketing that even their customers are selling their products for them through word of mouth.
The ecosystem of Square’s products and services is set to fully enhance the user experience and make everything extremely simple. They have all the tools a business and individual would need.
SQ is just getting started, and it’s really only a matter of time before they begin to capture more users with their services. They tend to appeal more to the younger audience as they have more modern designs and approaches to their platforms.
Digital wallets are just one part of the company’s business, however it will amass massive growth over the next decade as people shift to more easy and accessible services.
Square likes to diversify their cash into other assets, recently dabbling into more Bitcoin. They purchased approximately $170 Million of Bitcoin, however when you compare this purchase to their overall cash position of $3.1 Billion their recent purchase makes up less than 5.5%.
This push for owning Bitcoin is becoming mainstream as worries of inflation rise around the world. We don’t see a problem with Square having exposure to Bitcoin as it’s a hedge against uncertainty of inflation and may even act as a form of payment sometime in the future, hence why they could be building liquidity.
Decades Worth of Growth
Square is one of those companies that will be here for a long time, and continue to grow exponentially. Saying Square is just a small business and financial software solutions company is an understatement when you look at the underlying foundation they are setting to shift millions of people onto their financial ecosystem.
It’s time for traditional financial services to be thrown into the casket, and embark on a new financial future for everyone.