Square Begins Morphing into Full Service Bank

Square is starting to take on the look of a full service bank as their Cash App has helped to provide a much needed service to more than one million users; according to Credit Suisse the fintech has 1.2 million users who set up direct deposit, that is up from 500,000 at the end of March; Cash App has moved beyond p2p money transfers and stock investing, they now offer the ability to store money, make purchases, receive direct deposit two days early and more; Credit Suisse analyst Timothy Chiodo tells Forbes,“We think they’ll add budgeting tools and bill payment capabilities.” Credit cards and buy-now, pay-later loans will get added, too, he expects; the company charges 1.5 percent on instant money transfers through Cash App and is expected to make $1bn to $2bn in profit by 2023; Square has not had the same fanfare as some other digital banks but recent successes show it is a real threat to incumbent and digital banks alike. Forbes

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