Cash App Deep Dive
Block Inc. (SQ) reported earnings last week that showed strength within its payments processing subsidiary, Cash App. Cash App’s installed base grew to 51 million in monthly transacting actives to end 2022, up 16% YoY. We’ve been running quarterly surveys tracking consumer sentiment on SQ for a number of years now, and released our newest wave of the survey earlier this week containing a deep-dive on Cash App.
Feedback around Cash App is positive and has improved q/q.
According to the latest earnings report, nearly 26% of Cash App’s gross profits come from the Cash App physical card itself. This is especially interesting when examining our data which shows that 56% of users consider Cash App to be their primary bank. Both of these inflection points are pointing towards Cash App turning into a main banking product.
Self reported expected total saving and spending through Cash App has improved q/q, with the percentage of users who have their paycheck directly deposited into Cash App increasing as well.
The percentage of Cash App users that told us that the Cash Card is their primary card for spending improved q/q, a metric that falls in line with what SQ reported during earnings.