Hi Ryan, I am a fan of your content! Actually referred to your work on my write-up about Kaspi.
yeah, i agree that square really has a chance of building a super app for the US. There is still work to be done (e.g. lending in cash app and online commerce for seller) - I think the bottleneck is on a seller side, but once they grow large retailers and verticals, pay with cashapp option will become a default.
Ha, that's awesome. I definitely agree! I very briefly mention lending (they have some small pilots running) and spend a fair bit of time on online commerce and some of sq's options there. I'm looking forward to reading more of your work
Very thoughtful piece on CashApp. Thanks also for highlighting the disproportionately low gross profit from growing crypto revenue. Follow-up question: do you know why the crypto trading yields such low gross profit? Trying to figure out if this is true across neobanks...thanks!
Seems to be accounting treatment - all bitcoin transacted volumes are treated as revenue, where then cash app has a couple % point take rate which is effectively their margin.
Ah I see - thanks for replying. Seems odd that they can count the entire dollar volume as revenue when COIN only accounts for the 2-3% commission as revenue....wonder if neobanks also count all crypto dollar volume as revenue as well...
Great write-up! I saw you mentioned the Super App case. I recently did a whole write-up on the case for Cash App as a US Super App. https://eastmeetswest.substack.com/p/cash-app
Hi Ryan, I am a fan of your content! Actually referred to your work on my write-up about Kaspi.
yeah, i agree that square really has a chance of building a super app for the US. There is still work to be done (e.g. lending in cash app and online commerce for seller) - I think the bottleneck is on a seller side, but once they grow large retailers and verticals, pay with cashapp option will become a default.
Ha, that's awesome. I definitely agree! I very briefly mention lending (they have some small pilots running) and spend a fair bit of time on online commerce and some of sq's options there. I'm looking forward to reading more of your work
Very thoughtful piece on CashApp. Thanks also for highlighting the disproportionately low gross profit from growing crypto revenue. Follow-up question: do you know why the crypto trading yields such low gross profit? Trying to figure out if this is true across neobanks...thanks!
Seems to be accounting treatment - all bitcoin transacted volumes are treated as revenue, where then cash app has a couple % point take rate which is effectively their margin.
Ah I see - thanks for replying. Seems odd that they can count the entire dollar volume as revenue when COIN only accounts for the 2-3% commission as revenue....wonder if neobanks also count all crypto dollar volume as revenue as well...