Use of Cash Pickup App Helps Boost Block’s Q1 Results – Digital Transactions

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Block Inc.’s Cash App unit rallied in the first quarter as the company reported that usage and instant deposit volume for the digital wallet both increased during the period. Excluding the Bitcoin business, Cash App revenue in the quarter increased by $203 million, a 38% jump from the first quarter of last year, Block reported Thursday evening.

The blockage referred to the increase in the number of assets cash app accounts and growth in the number of business accounts as propellants for Cash App performance. The unit also claimed income from After-payment, the buy now, pay later platform that Block acquired for $29 billion earlier this year. Revenue from the platform is split between Cash App and Block’s other operating unit, Square.

Cash App allows users to make peer-to-peer payments and trade Bitcoins and stocks. Bitcoin trading activity was depressed during the quarter due to the cryptocurrency’s relative price stability, the company said. He reported that Bitcoin revenue was cut in half from the prior year period to $1.7 billion.

The other part of Block, the Square merchant services, saw its payments volume grow 15% year-over-year to $39.5 billion. The company continues to upscale its acquisition business in market size, with sellers making $500,000 or more in annual sales representing 35% of volume, up from 26% a year ago and 23% in the same quarter of 2020 With the Cash app included, payment volume totaled $43.5 billion, up 31% from the first quarter of last year. Cash App payment volume increased 39% to $3.9 billion.

For the quarter, revenue totaled $3.96 billion company-wide, compared to $5.06 billion a year ago, primarily due to falling Bitcoin revenue. Cash App alone generated $2.46 billion in revenue, overtaking Square, which finished with revenue of $1.44.

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