What are we learning about Cash Apps growing engagement?
Engagement is a crucial indicator of product market success in the mobile app world. The most recent data shows that Cash App continues to see engagement grow. From January 2021 to today time spent in Cash App is +15%, vs. flat for Zelle and a slight tick down for Venmo. The biggest question one should ask is why... If you follow these products closely, you likely know that Cash App has been building more tools inside the app that drive engagement. So far this is working. Tools such as investing, Cash Boost, their bitcoin trading, and their cash app Fridays have created a unique flywheel. These are tools/products not in the other apps referenced. While this is not supposed to be a Block/Square/Cash App post, it is a post to depict how companies can separate themselves from a product standpoint.
Potential Investment Implications
From an investment perspective, it is essential to understand how your company's products drive behavior and use data to support the thesis. Using data, we know that Cash App has taken the lead in the US as they grow users, usage, and products. They are looking to further separate from their competition by using their acquisition of AfterPay. AfterPay came with millions of merchants, and Cash App is now building a shopping discovery tab to continue driving transaction and engagement. This will be interesting to see the product once fully rolled out and what it does to the time spent data shown today. We will be watching!
** Not a recommendation to purchase or sell any companies mentioned. See the website disclosure page.