The app research firm, Sensor Tower and Nomura Instinet revealed data that show that the total downloads of Square’s Cash App are far more than that of its rival, Paypal’s Venmo, according to an earlier report.
For the first time, Square’s Cash App presently records a cumulative total download of 33.5 million, which surpasses Venmo’s 32.9 million, since after a successful July where it increased three times faster than Venmo. The two companies made their peer-to-peer platforms majorly important, launching new features with the intention of increasing the user base and monetize it.
Square has decided to increase the use of its Cash Card by making it a major part of its product ecosystem. The app was integrated with Caviar, which is its food delivery business and had made it helpful for immediate payments (such as payment for gasoline), and also gave the Square merchants a choice to transfer payroll deposits to workers.
An analyst who works with Nomura Instinet, Dan Dolev, anticipates the new market-leading position to increase Square’s shares with an approximately $30 million or 2 to 3 percent of modified net revenues this year. His report was supported by his analysis and data from Sensor Tower.
“Square Cash,” is an app that usually enables users to send and receive money from friends and also approve card payments for businesses. Base on the company’s second quarter release, the customers of Cash used $250 million on cash transaction.
Dolev’s note to clients on Tuesday shows that he believes the app can have an impact on the development of Square, which could get to or even surpass “$100 million in sales by 2020” even though there is lack of “active user penetration.”The firm’s stock increased 3.3% to reach an intraday high of $ 74.99, which is around 726 percent gain since the time when the company went public in 2015.
Recently, bitcoin trading was rolled out to all 50 U.S. states by the company. In a tweet shared on Aug. 13, the company confirmed that the app can now be used to buy and sell bitcoin throughout the country.
Dolev is sure Square’s boost is “more than just a bitcoin play.” The payment app continued increasing even though there was a crash in crypto prices and a cutback in downloads of famous cryptocurrency exchanges such as Coinbase.
“Interestingly, this relationship seems to go both ways. While Bitcoin prices increased in July and Coinbase downloads accelerated 11 percent, Cash App downloads remained stable at 154 percent, showing little variance from prior months’ growth rates,” Dolev stated.
Twitter CEO Jack Dorsey, who believes the internet will apply the use of a “single currency” within a decade and that this currency “will be bitcoin”, co-founded Square nine years ago.