If you are an investor in Square like me, you know that the Cash App is a big deal. The peer-to-peer (P2P) payments app is growing tremendously fast and is now bringing in meaningful revenue for the company. In fact, the platform just hit a $500 million revenue run rate, and now makes up more than half of Square’s services revenue.
So what exactly is the Cash App? Like Venmo (the P2P app owned by PayPal), you can send money instantly and for free to any of your friends. However, unlike Venmo, with the Cash App you can also:
- Buy Bitcoin
- Get direct deposit from your bank
- Pay merchants with the free Cash Card, a debit card that offers 10% off Door Dash and other boosts
The semi-famous boosts (a fancy name for permanent discounts) from the Cash Card is what made me sign-up for the app and start using the service. So far I’ve found it to be very easy and a real money saver.
The Cash App is riding some extraordinary momentum at the moment. Let’s go through some reasons why that has occurred, and why I think it will eventually be a $10 billion business for Square.