By the numbers: Block’s gross payment volume (GPV) jumped 31% year-over-year (YoY) in the first quarter, reaching $43.5 billion, by its letter to shareholders. GPV growth has accelerated slightly compared to the same period Last year (+29% over one year) but slowed down by the last quarter (+45% over one year).
More on this: The Cash app appeared several times during Block’s earnings calland U.S wait the number of US Cash app users will increase by 15.3% year-on-year and reached 47.8 million in 2022, down from last year’s 22.1% year-on-year growth.
Here are some of our key takeaways from Block’s earnings call regarding the growth of Cash App.
Strong user involvement. Monthly active users made an average of 21 transactions across Block’s ecosystems, and March had the Cash app’s highest monthly engagement, Chief Financial Officer Amrita Ahuja said on the earnings call. The increased adoption of the Cash App card and direct deposits has fueled the growth of the peer-to-peer (P2P) payment application. Block also wants to create more family engagement on Cash App – he’s started letting teens utilize application in November.
Closer Afterpay connections. Block wants greater synergy between the Afterpay and Cash App ecosystems, which CEO Jack Dorsey says can add a lot of power and value for sellers and customers. During the “early experiences”, Cash App monthly active users sent over 350,000 leads to Afterpay sellers in the first quarter, by Dorsey.
Bitcoin Capabilities. Dorsey said over 10 million Cash App users have purchased Bitcoin since the service launched in 2018. The asset is a staple for Block, which recently launched two new capabilities for simplify Bitcoin invest on Cash App. Block has also started allowing Cash App users to send and receive Bitcoin to compatible external wallets via the Lightning Network.
And after? Block executives discussed two growth opportunities for Cash App.
- Social integrations. Dorsey noted the potential for stronger social components for Block, and more specifically Cash App. The last trimester mentioned the company was experimenting with integrations like a search function that allows Cash App users to discover BNPL offers and Afterpay merchants. The company could also integrate more social elements into Cash App, such as what Venmo offers with its payment flow.
- Global expansion. Block already allows Cash App users to send money between the UK and US, but it could expand the service to other markets, such as Spain. Dorsey called on Block over acquisition of Spanish P2P payment app Versesaying Block would use Verse to inform his next moves.