Cash App drives transaction growth for Square

Square’s peer-to-peer Cash App, drove the company’s performance in the second quarter. Square reported $1.92 billion in net revenue for the second quarter – a 64% year-over-year jump – despite an $11 million loss. Gross profit from the Cash App rose 167% year-over-year and stored funds grew 86% quarter-over-quarter. Cash App also lets users buy and sell bitcoin, and generated $875 million of bitcoin revenue during the quarter, Square reported.

Why should we care?
Cash App, which competes with PayPal-owned Venmo and bank-backed Zelle, now has 30 million users, up 13% since the end of last year. Looking at user numbers, Cash App is still well behind Venmo, which has more than 300 million users. Its strong growth is reportedly the result of a focus on the underserved. According to the company, it saw a “meaningful uplift” from users depositing government stimulus checks, along with unemployment benefits and tax refunds. Square has been expanding Cash App’s reach through a marketing campaign which includes Twitter cash giveaway campaigns and sponsorship of TikTok influencers.