Engagement is a crucial indicator of product market success in the mobile app world.
And the most recent data shows that Cash App continues to see engagement grow.
From January 2021 to today the time spent on Cash App is +15% versus flat for Zelle and a slight tick down for Venmo (per SimilarWeb). The biggest question one should ask is why…
If you follow these products closely, you likely know that Cash App has been building more tools inside the app that drive engagement. So far this is working.
Tools such as investing, Cash Boost, their bitcoin trading, and their cash app Fridays have created a unique flywheel. These are tools/products not in the other apps referenced. While this is not supposed to be a Block/Square/Cash App post, it is a post to depict how companies can separate themselves from a product standpoint.
From an investment perspective, it is essential to understand how your company’s products drive behavior and use data to support the thesis. Using data we know that Cash App has taken the lead in the US as they grow users, usage, and products.
They are looking to further separate from their competition by using their acquisition of AfterPay, which came with millions on merchants. Cash App is now building a shopping discovery tab to continue driving transaction and engagement. This will be interesting to see how the product looks once fully rolled out… and how it effects the user engagement data we discussed today. We will be watching!
The author or his firm may have positions in mentioned securities at the time of publication. Any opinions expressed herein are solely those of the author, and do not in any way represent the views or opinions of any other person or entity.