CashApp was launched in 2013, long before Zelle and other instant payment rails arrived, which closed wallet providers solved for (Venmo too, owned by...Paypal). There is little growth to be had when these customers can get free deposit accounts with access to Zelle or FedNow to move value for free instantly. It's success to be sure to accumulate the cashflow from the customer base built, but it isn't lasting.
Everywhere else has instant settlement payment rails available for yonks.
And FedNow removes the need for Zelle or CashApp, assuming the banks offer it.
Of course, a regulator working for the consumers might mandate as part of a banking deposit taking license, that the bank must offer FedNow as part of the account at zero transaction cost to the account holder, perhaps with transaction limits.
Updated to two tricks. And you could argue three if you call banking its own trick. Afterpay was an acquisition (and much smaller) so IDK if that counts.
Still, all the bitcoin stuff, music, other side ventures, most of the international expansion, attempts to appeal to bigger businesses, the recent "focus local" vision, all hardly made a dent in the respective markets and I wouldn't be surprised if they lost money or are still losing money on most of those things.
Afterpay (and the other Buy Now Pay Later competitors like Klarna) are potential financial arrangement facilitators for their customers.
Sure the BNPL model uses effectively invoice factoring with high interest penalties but they do have a financial relationship with both vendors and buyers.
There's a lot to leverage there. It's Paypal with lending attached.
toomuchtodo|3 days ago
tempest_|3 days ago
rswail|2 days ago
Everywhere else has instant settlement payment rails available for yonks.
And FedNow removes the need for Zelle or CashApp, assuming the banks offer it.
Of course, a regulator working for the consumers might mandate as part of a banking deposit taking license, that the bank must offer FedNow as part of the account at zero transaction cost to the account holder, perhaps with transaction limits.
daxfohl|3 days ago
Still, all the bitcoin stuff, music, other side ventures, most of the international expansion, attempts to appeal to bigger businesses, the recent "focus local" vision, all hardly made a dent in the respective markets and I wouldn't be surprised if they lost money or are still losing money on most of those things.
rswail|2 days ago
Sure the BNPL model uses effectively invoice factoring with high interest penalties but they do have a financial relationship with both vendors and buyers.
There's a lot to leverage there. It's Paypal with lending attached.
ceejayoz|3 days ago
I can make a lot of revenue selling $100 bills for $10. I'm not sure it'd "pan out".