Dorsey: Social integration could grow Cash App

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Block delivers strong Q1, hails Cash App's growth potential

Block's gross payment volume (GPV) surged 31% year over year (YoY) in Q1, hitting $43.5 billion, per its shareholder letter. GPV growth accelerated slightly from the same period last year (+29% YoY) but slowed from last quarter (+45% YoY).

Cash App came up repeatedly during Block's earnings call, and we expect the number of US Cash App users to increase 15.3% YoY and hit 47.8 million in 2022—slower than last year's 22.1% YoY growth.

Block executives called out two growth opportunities for Cash App: social integrations and global expansion.

CEO Jack Dorsey noted the potential for stronger social components for Block—and more specifically Cash App. He also highlighted Block's acquisition of Spanish P2P payment app Verse, saying that Block would use Verse to inform its next moves.

Insider Intelligence's Adriana Nunez has the full story.

BRIEFING HIGHLIGHTS

PayPal brings softPOS to European small businesses through Zettle

PayPal's small-business point-of-sale (POS) brand, Zettle, launched a software POS (softPOS) solution for merchants in the Netherlands, the UK, and Sweden, per a press release.

Google brings back Wallet and boosts security with virtual card solution

Google relaunched its Wallet app across most markets and introduced virtual cards for online shopping, per a press release.

US regulators' overhaul of Community Reinvestment Act stops short of fintechs

The Federal Reserve, Office of the Comptroller of the Currency (OCC), and the Federal Deposit Insurance Corp (FDIC) have collaborated on a proposed update of the Community Reinvestment Act (CRA).

Canadian Neo Financial's $185M CAD fund raise signals confidence in neobanks

Canada-based digital bank Neo Financial raised $185 million CAD ($147.6 million) in a funding round, per PYMNTS.

Klarna courts merchants with revamped online shopping experience

Klarna launched Virtual Shopping, which connects online shoppers with in-store retail associates via live chat and video to get product advice and shopping inspiration, per a press release.

Incumbents that fail to address social equity issues risk losing customers to affinity banks, Deloitte finds

A survey from Deloitte has found that financial institutions are coming under increasing pressure to address and improve social equity issues.

US cannabis market provides greenfield for digital payment startups

Payment startups are tapping the cannabis industry with solutions aimed at digitizing the historically cash-dependent sector.

U.S. Bank hopes $100B community plan will advance the MUFG Union Bank merger

U.S. Bank announced a $100 billion community benefits plan to accompany the proposed merger with California-based MUFG Union Bank, per a press release.

Investors say wealth managers are missing the mark on advice

Investors are struggling to find the advice and services they need, regardless of how they access wealth management services, per two new surveys by J.D. Power.

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