Block, Inc. (NYSE: SQ) operates as a technology company with a focus on financial services. It builds tools to help people in accessing the economy. Its products include Square that makes commerce and financial services easy and accessible for sellers with its integrated ecosystem of technology solutions; Cash App to send, spend, or invest money in stocks or bitcoin; Afterpay for connecting consumers and businesses; TIDAL; and TBD that is building an open source platform and developer infrastructure which enables everyone to access and participate in the global economy. The company operates in the United States and internationally. The company was formerly known as Square, Inc. and changed its name to Block, Inc. in December 2021. Block, Inc. was incorporated in 2009 and is based in Oakland, California.
Block’s product suite has evolved from a way for merchants to accept credit cards using their mobile phones into a large-scale financial ecosystem for individuals and small businesses. The company now processes card payments at an annualized rate well over $200 billion, has its own banking subsidiary (Square Financial Services), and a thriving small business lending platform. Plus, it recently entered the buy-now, pay-later lending space with its acquisition of Afterpay.
There are two major parts of the company’s business, Cash App and Square Online. Cash App has 49 million active monthly users as of September 2022 and virtually unlimited potential to build out its consumer financial service offerings. The platform already offers direct deposits, debit cards, the ability to buy and sell Bitcoin, and a user-friendly stock trading platform. Square Online, the version of the company’s merchant platform that helps sellers develop an omnichannel presence, is a great way for the company to benefit from the surge in e-commerce adoption. Therefore, long-term investors should own this stock for a ton of long-term potential in the fintech industry,