Bitcoin-Friendly Square Cash is Now More Popular Than Venmo

Data from app research firm Sensor Tower and Nomura Instinet have revealed that cumulative downloads of Square’s Cash App have surpassed that of its rival, Paypal’s Venmo, per a Bloomberg report.

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Square’s Cash App now has a cumulative total download of 33.5 million, which exceeds Venmo’s 32.9 million for the first time, after a successful July where it grew three times faster than Venmo. Both companies had made their peer-to-peer platforms a priority, introducing new features in a bid to increase the user base and monetize it.

Square has taken steps to grow the adoption of its Cash Card by making it an integral part of its product ecosystem. It has integrated the app with Caviar — its food delivery business — made it useful for instant payments (such as payment for gasoline), and provided Square merchants with an option to transfer payroll deposits to employees.

Dan Dolev, an analyst that works with Nomura Instinet, expects the new market-leading position to boost Square’s shares with an estimated $30 million or 2 to 3 percent of adjusted net revenues in 2018. His report cites his analysis and data from Sensor Tower.

The app, often referred to as “Square Cash,” allows users to send and receive money from friends and accept card payments for your business. According to the company’s second quarter release, Cash App customers spent $250 million on cash transaction.

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In his note to clients on Tuesday, Dolev believes the app can affect the growth of Square, which could reach or exceed “$100 million in sales by 2020” despite the absence of “active user penetration.” Square’s stock rose 3.3% to hit an intraday high of $ 74.99, which is about 726 percent increase since the company went public in 2015.

Cash App users can buy and sell bitcoin from within the app.

The company also recently rolled out bitcoin trading to all 50 U.S. states. In a tweet shared on Aug. 13, the company said users can now use the app to buy and sell bitcoin throughout the country.

Dolev believes Square’s growth is “more than just a bitcoin play.” The payment app kept growing despite the slump in crypto prices and a slowdown in downloads of popular cryptocurrency exchanges such as Coinbase.

“Interestingly, this relationship seems to go both ways. While Bitcoin prices increased in July and Coinbase downloads accelerated 11 percent, Cash App downloads remained stable at 154 percent, showing little variance from prior months’ growth rates,” Dolev explained.

Square was co-founded nine years ago by Twitter CEO Jack Dorsey, who believes the internet will adopt a “single currency” within a decade and that this currency “will be bitcoin.”


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Square Seeing ‘Real Growth’ in Bitcoin User Base: CFO

Square Inc. Chief Financial Officer Sarah Friar has hailed the impact of bitcoin support on the company as it continues to record strong growth driven primarily by its flagship Cash App, also known as Square Cash.

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“Rarefied Air”

In a discussion with Emily Chang on Bloomberg TV, Friar remarked that the company is “super impressed” with their second quarter results, which showed 60 percent top line growth.

When asked about the importance of bitcoin to Square’s performance, she at first sought to downplay it, pointing out that in Dec. 2017 — before crypto support went live — the app recorded seven million monthly active users.

Pressed further, however, she commented:

“There is real growth under the hood because we are a top 30 app in the app store. In fact yesterday we were 15th and we might go even higher toward the end of the week. That’s rarefied air, and that’s a good way to monitor the growth that’s going on on the platform.”

Square’s Utility Strategy

In answer to a question about why the app allows people to buy and sell bitcoin but not send or receive it, Friar revealed that Square’s strategy is to establish the utility of any service before offering it.

In Square’s opinion, it is key to make sure that there is actual demand and use case for a service before building support for it. Providing a platform to buy and sell bitcoin, or pay for transactions with bitcoin, she said, is the easiest route into the market, from where it will be better placed to expand its service offering.

In her words:

“Crypto is just one of many pieces of utility that people want. It’s not the be all and end all that I think we hear a lot on financial news. Rather it’s just like any other form of investing. People want to have access and that’s what Square’s purpose is.”

CCN earlier reported that Square’s cryptocurrency profits experienced a 100 percent growth rate in Q2 2018 despite the overall crypto bear market, indicating that users have established genuine utility in the app that transcends market vagaries and speculative movements.

2018 has been something of a red-letter year for Square in general. In June, CCN reported that it achieved a market capitalization all-time high after being awarded a New York BitLicense.

Notably, CEO Jack Dorsey has been extremely bullish on bitcoin, recently predicting that it will be the world’s leading currency within ten years.


Here at Dollar Destruction, we endeavour to bring to you the latest, most important news from around the globe. We scan the web looking for the most valuable content and dish it right up for you! The content of this article was provided by the source referenced. Dollar Destruction does not endorse and is not responsible for or liable for any content, accuracy, quality, advertising, products or other materials on this page. As always, we encourage you to perform your own research!

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Author: David Hundeyin
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