We have seen that companies create new companies which cater to a whole different category of users. In particular, we are talking about Twitter CEO Jack Dorsey’s FinTech company Square. For those who are not aware, Square is also operated by Jack Dorsey and they have a free cash transfer app called Cash App. On Cash App, you can easily transfer money from one point to another and it is gaining popularity in the US.
Now, Bloomberg reports that Square is testing a new platform where you will be able to do free stock-trading and this facility will be available right inside the Cash App. Also, it will mean that Cash App will become a direct competitor to Robindood. According to the report, a promotional video of the new feature was seen which revealed the new stock-trading functionality in full. The report adds that Square is testing the ability to buy and sell stocks inside Cash App.
As we mentioned earlier, Cash App adding a free stock-trading feature on its platform will mean that Robinhood becomes its direct competitor. Robinhood was last valued in July at $7.6 Billion and it counts venture capital firm Sequoia Capital as one of its investors.
Apart from the forthcoming stock trading feature inside Cash App, we already know that it offers digital money transfers, debit cards and bitcoin trading. Last year in 2018, we know that Cash App doubled its monthly active users at 15 million.
Square will be looking to emulate its bitcoin success as the revenue from cryptocurrency rose 168% year-over-year in the first half of 2019. Also, this rise in the revenue helped them drive total sales up by 44% to a total of $2.1 Billion. As far as the launch date of Square’s free stock-trading platform is concerned, the company has not taken any decision on that as per the report.
