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Bitcoin-Friendly Square Cash is Now More Popular Than Venmo

Last Updated March 4, 2021 3:56 PM
Jimmy Aki
Last Updated March 4, 2021 3:56 PM

Data from app research firm Sensor Tower and Nomura Instinet have revealed that cumulative downloads of Square’s Cash App have surpassed that of its rival, Paypal’s Venmo, per a Bloomberg report .

Square’s Cash App now has a cumulative total download of 33.5 million, which exceeds Venmo’s 32.9 million for the first time, after a successful July where it grew three times faster than Venmo. Both companies had made their peer-to-peer platforms a priority, introducing new features in a bid to increase the user base and monetize it.

Square has taken steps to grow the adoption of its Cash Card by making it an integral  part of its product ecosystem. It has integrated the app with Caviar — its food delivery business — made it useful for instant payments (such as payment for gasoline), and provided Square merchants with an option to transfer payroll deposits to employees.

Dan Dolev, an analyst that works with Nomura Instinet, expects the new market-leading position to boost Square’s shares with an estimated $30 million or 2 to 3 percent of adjusted net revenues in 2018. His report cites his analysis and data from Sensor Tower.

The app, often referred to as “Square Cash,” allows users to send and receive money from friends and accept card payments for your business. According to the company’s second quarter release , Cash App customers spent $250 million on cash transaction.

In his note to clients on Tuesday, Dolev believes the app can affect the growth of Square, which could reach or exceed “$100 million in sales by 2020” despite the absence of “active user penetration.” Square’s stock  rose 3.3% to hit an intraday high of $ 74.99, which is about 726 percent increase since the company went public in 2015.

square buy bitcoin
Cash App users can buy and sell bitcoin from within the app.

The company also recently rolled out bitcoin trading to all 50 U.S. states. In a tweet shared on Aug. 13, the company said users can now use the app to buy and sell bitcoin throughout the country.

Dolev believes Square’s growth is “more than just a bitcoin play.” The payment app kept growing despite the slump in crypto prices and a slowdown in downloads of popular 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 explained.

Square was co-founded nine years ago by Twitter CEO Jack Dorsey, who believes the internet will adopt a “single currency” within a decade and that this currency “will be bitcoin.”

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