Fintech Block Inc reveals 71% growth potential for investors
San Francisco-based fintech Block Inc, has an expected expected growth value of 71%, according to data released by the Allied Market Research body.
According to reports, the predictive data shows that Block Inc. – the leading card payment fintech within the Square group of companies – lost over 76% of its market value as a result of a drop in investor appetite for riskier assets.
But despite this massive blow to the company, data suggests that as the cashless market grows, it will act as a natural growth driver for Block Inc, as all of the fintech’s solutions are cashless transactions.
The increase in investor potential also follows the recent acquisition of Afterpay by Block, which will also give fintech further potential, both through significant growth in the Buy Now Pay Later (BNPL) market and through the addition of a Cash App customer base.
A cashless society drives fintech growth
Data shows that the use of cash is rapidly declining as an increasing number of consumers prefer digital payment methods. According to the Smithers report, non-cash payments are expected to grow at a compound annual growth rate (CAGR) of 10.5%, reaching $1.22 billion in 2024 and $1.96 billion by the end of 2029.
By integrating Afterpay into the Blocks Cash App, the fintech can now collect large amounts of data on consumer habits and preferences to use to reach out to the advertising market. Furthermore, Block has a high growth rate and, unlike other fintech companies, generates positive cash flow and has a strong balance sheet. According to the Wall Street consensus, Block trades at a significant discount to fair market value.
Block Inc and digital payment potential
Founded in 2009 by Jack Dorsey and James McKelvey, Block, Inc. enables merchants to accept card payments and provides them with reports and analytics within the Square segment. The fintech company offers an ecosystem of financial products and services to help users manage their money.
Information collected by Allied Market Research on the fintech market shows that the global industry will have an expected value of $698.48 billion by 2030.
The sector is continuously driven by innovative ideas and new startups trying to earn their place in the market. This shift has given consumers the expectation of faster and more personalized experiences.
As the market continues to grow, investors can expect to earn significant returns if they put their money in the right company, say Allied Market Research experts.
When looking at investments of any kind during this market downturn, it is extremely important to understand the company. Looking at competitive advantage, history, size and operations are all essential to responsible investing. With this in mind, Maxim Manturov, Head of Investment Advisory at Freedom Finance Europe, gives his insight into Block Inc. and outlines whether retail investors should consider it a safe investment.