- Arguably the most important fintech metric is customer acquisition cost (CAC). Square’s mastery of viral marketing results in the lowest CAC in the digital wallet space. This is a moat.
- Square is building massive ecosystems in Cash App and Seller that are just beginning to overlap, which results in massive cross-selling opportunities and network effects.
- Square banking is a major catalyst that has not received sufficient attention from analysts or investors.
- Square has spent an entire year building as-of-yet unannounced Square Checking and Square Banking products. This is a shot across the bow at incumbent banks, and indicates Square is ready for a higher level of fintech warfare.
- Square’s future relationship with Crypto remains undercooked, and Dorsey’s overfocus on Bitcoin to the exclusion of alternative coins is an uncommon mistake.
For further details see:
Square: Winner Takes Most