Square Inc (NYSE:SQ) shares are up big this year, and the company continues to ramp up its suite of product offerings. There appears to be a lot more to come on the offering front, and that sets the company up for even more growth ahead.
The Motley Fool explains.
With regard to financial services, the Cash App is playing a key role. What started as a peer-to-peer payments app is now a tool for the underbanked, enabling direct deposits and in-store payments. Square increased the usefulness of the Cash App by issuing a Cash Card — a prepaid visa debit card — which works just like a debit card in stores and online.
The Cash Card will be Square’s most important product in the future, as it unlocks the possibility to offer merchants a direct line of marketing to consumers, and it opens the door for Square to offer consumer loans to its users. These are two areas with great potential for Square.
The Cash Card is already off to a strong start, as the company reported that users were spending at a $1 billion run rate for the month of December. Beyond the usage, the company also benefits from the data it is able to collect about its users.
The more users that climb in board, then the more the company will be able to enhance its financial service offerings. As the Motley Fool explains, there’s a tremendous opportunity out there if the company decides to ramp up its presence in consumer loans.
Square Inc shares fell $0.88 (-1.39%) in premarket trading Wednesday. Year-to-date, Square, Inc. Class A (SQ - Get Rating) has gained 79.98%, versus a 5.02% rise in the benchmark S&P 500 index during the same period.