Why Europe Must End Its 30-Year Digital Winter to Ensure Its Long-Run Future

Block Sees 20% Jump in Cash App Card Monthly Active Users in December 

Block’s latest earnings show more users opting to use Cash App Cards, an on-ramp to other financial services and products.

As noted in the company’s shareholder letter, 2 million actives (3% of total monthly transacting actives) were depositing their paycheck into Cash App each month, relative to 23 million Cash App Card monthly actives (41% of monthly transacting actives, which stood at 56 million).

In December alone, the company recorded a 20% jump in Cash App Card monthly active users to 23 million, more than twice the growth rate of total monthly actives.   

“We see the Cash App Card as a gateway to our customers adopting Cash App as a primary banking solution,” CEO Jack Dorsey wrote in the letter.

Cash App Pay, the company said, had 3 million monthly actives and $2.5 billion in annualized GPV.

BNPL Momentum

Management noted strength in the company’s BNPL Platform in the fourth quarter of 2023, with $8.6 billion in GMV up 25% year over year, driven by Pay-in-Four offerings.

Square generated $1.5 billion of transaction-based revenue in the fourth quarter of 2023, up 10% year over year. Drilling down into certain categories, food and drink GPV was up 15%, GPV from services verticals was up 8%, and retail GPV was up 4%.

Company materials noted that card-present GPV was up 13% year over year while card-not-present GPV was up 4% year over year.

Read more: Block to Cut 112 Jobs as Cost-Cutting Moves Continue

During the conference call with analysts, CFO Amrita Ahuja said that churn was stable during the quarter. 

Banking products and vertical point of sale solutions delivered strong growth, she said, with gross profit from those solutions growing.

She noted that inflows for transacting members averaged more than $1,100 in the fourth quarter, up 8% year over year.

Looking ahead, said the CFO, the company is targeting adjusted operating income for the full year of $1.1 billion vs. a preliminary guidance of $875 million.

Investors sent the shares up 12% in after-hours trading.

Primary Banking Relationships

Asked on the conference call about broader strategy, Dorsey said that Block will seek “to make sure that we are the best choice and the first choice for anyone who’s making $150,000 to see Cash App as their primary bank” as the company focuses its banking efforts, marked by no fees and early direct deposit availability, for its base in the United States.  

The goal, management noted on the call and in the letter, has been to convert the base of 56 million transacting active users — who mostly use P2P and Cash App Card — into active users who deposit their paycheck into Cash App, which would increase inflows per active account. Dorsey noted that Cash App Card actives who deposit at least $2,000 of paychecks per month spend nearly six times more than Cash App Card actives who do not deposit a paycheck with Cash App.

“We’re focused on the new products and the features that drive engagement,” said Dorsey during the call with analysts.