Block Pushes Past Payments Into Bitcoin, Banking and BNPL

Core Insights - Block aims to become a comprehensive financial hub for consumers and merchants, integrating various financial services including P2P payments, commerce tools, banking services, and bitcoin capabilities across its platforms Cash App and Square [1][3]. Financial Performance - Block reported double-digit gross profit growth and expanding margins, raising its full-year forecast, indicating a strong financial performance [4]. - Square's gross payment volume (GPV) grew 10% to $64.2 billion in Q2, with international growth at 25%, significantly outpacing the U.S. growth of 7% [5]. Cash App Developments - Cash App processed $218 billion in P2P volume over the past year, positioning itself as a low-cost growth strategy with organic user acquisition [5]. - Cash App's banking activities reached 8 million users in June, a 16% year-over-year increase, with short-term loan product Borrow seeing a 95% growth in originations to $18 billion annualized [7]. Commerce Network Expansion - Block's commerce network handled $183 billion in spending over the last 12 months, a 16% increase, with plans to personalize offers and introduce an "auto-selection" feature for savings [6]. - The buy now, pay later (BNPL) segment saw gross merchandise value hit $9.11 billion, up 17%, driven by Pay-in-Four plans and new post-purchase options [6]. Bitcoin Integration - Cash App customers have transacted over $58 billion in bitcoin since its launch, with upcoming features allowing Square sellers to accept bitcoin payments that settle instantly in either crypto or local currency [8]. Technological Advancements - Block is enhancing the integration between Cash App and Square, allowing Cash App Business sellers to utilize Square's Tap to Pay on iPhone, leveraging shared data and marketing tools [10]. - The introduction of Square AI in the seller dashboard provides merchants with instant insights into sales patterns, enhancing operational efficiency [11]. Market Focus - Mid-market sellers, defined as those with over $500,000 in annual GPV, grew their volume by 17% year-over-year, now accounting for 44% of Square's GPV [12].