Square’s bitcoin-related transactions slow as it broadens reach of Cash App

Payments firm Square, which reported third-quarter earnings on Thursday, showed declining revenue from bitcoin transactions, although gross profit increased 43% to $1.13B. Consumer cash app growth also slowed, the company reported. “Consolidated gross profit missed by 2% on a largely-expected 5% miss in the Cash App," one analyst said.

Why should we care?
Square is looking to build engagement on the Cash App by offering access to younger users. Square is making the app available to younger teens between the ages of 13 and 17, the company said. Parents authorize use of the card, and if approved, teens can send peer-to-peer payments and obtain a customized card. Cash card payments for kids also don’t allow use of the tool at bars and clubs, liquor stores, cigar stores, hotels or other lodgings, or for lottery tickets, casinos or gambling. Square says expanding access to the Cash App for teens could open the platform up to as many as 20 million more users. Square’s Cash App, which has 70 million active users is likely making a play for a nascent teen banking market sought after by fintechs Step, Greenlight, Till Financial, and gohenry.