Theory of What SQ gets From SQ Cash

Any truth to theory re: What SQ gets from SQ Cash in TMF article today?…

“…the huge opportunity is moving Square Capital from that business-focused lending to now more consumer-driven lending. Really, I think the key for Square is going to be in its data. As they continue to build out their ecosystem, and with this omni channel presence that they’re building, I’ve been so impressed with how they’ve been expanding vertically in particular. But, I think what you have with that is, as you bring more and more people in, not only are you collecting data on their spending habits, not only can you start making personalized marketing recommendations, but you’re also making better, more informed lending decisions. I think that’s going to be a huge competitive advantage for Square in the long-term.

…Definitely. Like I said, it’s all very theoretical at this point, what could be the big money drivers. But, I mean, business lending, even if they get a small percentage of those seven million users to take advantage of personal lending services… Right now, I think Square Capital has, only about 3% of Square’s merchants are taking advantage of it, and it’s become a big revenue source for the company. So, like I said, even a small percentage of that seven million could be a big deal.”

“…Just to underscore that point, according to one market research company, eMarketer, they’re actually estimating the total value of mobile peer-to-peer payment transactions could rise to nearly $244 billion by 2021. That’s up from an estimated $156 billion in this year alone. Just to reiterate, the opportunity is huge, particularly with millennials who have been really among the first to adopt these new payment platforms. It’s really no wonder why you see so many jumping on to the P2P space. It comes down to speed, it’s also convenience and ease of use across many of those platforms that you mentioned.”

“…the three big ones have definitely become Venmo, Zelle, and Square Cash. It’s really picking up in America, and there’s still a lot of room for growth. This is definitely a big trend and worth paying attention to.”