Cash App is a popular peer-to-peer (P2P) payment service owned by Block, Inc. (SQ) (formerly Square Inc.), a leader in the financial technology industry. Cash App is just one part of Block's business offerings, which also include software and point-of-sale hardware for businesses of all sizes as well as cryptocurrency services. Since going public in November 2015, the company has quickly grown into one of the largest payment processing companies in the United States and has expanded its business model beyond payment processing to include enterprise offerings such as scheduling, employee management, and business analytics.
Block (Square at the time) launched its Cash App service in 2013 to compete with services like Venmo, Paypal, Apple Pay, and Google Pay. Such peer-to-peer (P2P) payments services allow consumers to use their smartphones to pay for goods and services, pay bills, and transfer money to friends and family. Cash App has expanded its functionality beyond just a peer-to-peer payment service; users can also receive direct deposit payments and ACH payments, as well as purchase cryptocurrency through the platform. More recently, Cash App introduced an investing feature called Investing that allows users to trade stocks and ETFs commission-free within the application.
Despite intense competition in the peer-to-peer payment industry, the addition of Cash App has been great for Block. The company reported a billion-dollar bump in revenue between 2017 and 2018: from $2.2 billion in 2017 to $3.3 billion in 2018. 2018 was also when Cash App surpassed Venmo in downloads, with 33.5 million cumulative downloads. As of the end of 2021, Cash App boasted 70 million active users and $1.8 billion in gross profit.1 As of Q1 2022, Block, Inc. has a market capitalization of $78.5 billion