For one decade, since it was launched in 2009, the fintech company Square of the CEO of Twitter, named Jack Dorsey, has transformed into a $29 billion digital payments giant and the go-to platform for users in order to send, as well as receive money and then buy Bitcoin.
On the 3rd of February, Dorsey revealed that Square Cash, which is also called Cash App, and which is one of the most widely used mobile payment applications in the United States market, became the second most popular free mobile app on the Apple App Store.
What was the reason for the fast growth of Square Cash?
Just like any other fast-growing startup, it actually targeted a niche market in merchants without access to point-of-sale or PoS terminals and credit card payments.
Previously to that, it was illegal for non-registered merchants to accept credit card payments and it was also hard for small businesses to obtain their access to financial services. After the successful start as a merchant-focused payment processor, the company has expanded to peer-to-peer mobile payments, and it released Square Cash.
Even though specific analysis claim that the Bitcoin integration of Square Cash was not overplayed by the media, it played a fundamental role in attracting some new generation, as well as millennial users.
Two years ago in November, when Square Cash initially enabled its users to buy Bitcoin or BTC on their mobile apps, the company had been valued at $16 billion. Fast forward 13 months, even right after the correction of the United States market in late 2018, the firm was valued at $29 billion, which is $13 billion higher than two years ago, in 2017.
The core business model of Square Cash relies on its mobile payment application which permits users to send, as well as receive payments instantly with low costs. However, the integration of BTC by the company strengthened the image of the platform as a forward-looking, as well as innovative mobile app.
Will BTC become the currency of the internet?
Last week, on the Joe Rogan Podcast, the CEO of Square and Twitter, named Jack Dorsey said that while he doesn’t know whether BTC is definitively going to become the currency of the internet, he believes that it may be BTC given its performance to date.
In some of its interviews from previously, he stated that Bitcoin has the power to become the single currency of the world in about ten years, projecting optimism towards its permanent growth.
The analysts of Wall Street foresee Square Cash performing strongly throughout the years that come, with the focus on innovation of the company. In one most recent product, the Square Card, which is a MasterCard for merchants, was described as genius as it permits merchants to withdraw or use funds as soon as they arrive through the application.
The firm is expected to continue growing
Taking into consideration the reception of the new product, the analyst of Citigroup, named Peter Christiansen, told that new products are going to continue helping the company to move forward and experience fast growth. He said that some new products like Debit Card for Business and Installments, and continued cash app or card growth and overall ecosystem expansion help in mitigating the anticipated declaration in the middle of this year.
On the 3rd of January, the digital payments giant has hired Amrita Ahuja as the new chief financial officer of the company, a former Blizzard Entertainment’s CFO to assist the company in the process of building, as well as to scale.
Dorsey said that Amrita brings the capacity to consider, as well as balance opportunities around the whole business, and she is going to help in the strengthening of their discipline as they invest, build, and also scale.
As the company also strengthens its dominance in the mobile and merchant payments sector, analysts expect that the firm will continue seeing growth in several business areas, which include its Bitcoin venture and the newly released debit card.