Buy Now Pay Later Features In Cash App Are Critical, Block Analyst Finds In Review Of Management Priorities

Credit Suisse analyst Timothy Chiodo recently hosted Block, Inc's SQ Head of Investor Relations for a Midwest NDR.
The discussions included Cash App Commerce, Cash App Borrow, Cash App MAU growth, Square's (Seller) growth in international markets, the BNPL competitive landscape, Block's focus on profitability, and more.
Speaking to Cash App, Block expects Cash App Commerce to be one of Cash App's primary gross profit growth drivers in the coming years and is investing accordingly behind the offering with an emphasis on user experience.
The current focus is on building out the Discover/Search tab, which will help to encourage user engagement and promote lead generation.
The app will initially feature BNPL (Afterpay) merchants. However, it will add Cash App Pay merchants (including existing Square merchants) and Cash for Business users over time.
Further, Cash App plans to promote a diversity of verticals.
Longer term, Block intends to better embed the checkout experience more natively into Cash App, similar to the shopping experience of super apps in Asia.
Afterpay is already providing advertising/lead generation on a standalone basis through its app, which will serve as a valuable roadmap for a successful Cash App rollout.
Price Action: SQ shares traded lower by 1.60% at $65.27 on the last check Tuesday.