SAN FRANCISCO - In a move aimed at expanding payment options for Android users, Cash App has announced its integration with Google (NASDAQ:GOOGL) Play, allowing customers to use Cash App Pay as a payment method for a multitude of digital goods and services. This partnership is set to provide users with increased convenience and choice, catering especially to the gaming community on the Android platform.
According to Pete Albers, Director at Google Play Retail & Payments Activation, the addition of Cash App Pay responds to the growing demand for diverse payment options, reflecting the changing preferences of consumers. The integration is expected to offer an alternative to traditional financial transactions, which see approximately $3 trillion annually bypassing conventional systems.
Cash App Pay, which has been witnessing steady growth with 4 million monthly active users and a consistent increase of 1 million actives each quarter, as per Block's Q1 2024 results, offers a simple and convenient payment solution. Users can pay using their Cash App balance or a linked debit card when making purchases on Google Play.
The collaboration between Cash App and Google Play is seen as a strategic move to combine two significant customer bases and enhance their mobile experience. Tanuj Parikh, Head of Partnerships at Cash App and Afterpay, emphasized the importance of providing next-generation shoppers with flexible payment methods that align with their preferences for using their own money.
Google Play serves as a digital marketplace for over 2.5 billion monthly users across 190+ countries, offering a wide array of apps and content. It maintains high safety standards for its consumers and developers, while Cash App presents itself as a versatile financial platform, offering services like instant Bitcoin transactions, direct paycheck deposits, and a Visa (NYSE:V) debit card accepted wherever Visa is accepted.
The information for this article is based on a press release statement.
In other recent news, financial technology firm Block Inc. has been a focal point of several significant developments. The company successfully upsized its private placement offering to $2 billion of 6.50% senior notes due 2032, surpassing the initial plan of $1.5 billion. The proceeds from this offering are intended for various corporate purposes, including potential debt repayment and strategic transactions.
Goldman Sachs initiated coverage on Block Inc. with a Buy rating and set a price target of $80.00, emphasizing its strong track record of product innovation and growth in key financial metrics. Meanwhile, TD Cowen suggested that the impact of a new rule from the Consumer Financial Protection Bureau on Block would likely result in minimal compliance costs.
In addition, William Blair maintained a Market Perform rating on Block, acknowledging the company's strategic growth focus but expressing caution due to its high valuation and potential risks. On the investment front, Cathie Wood's ARK ETF reduced its holdings in Block by selling 110,334 shares, indicating a shift in ARK's investment stance on the firm.
InvestingPro Insights
In light of Cash App's recent integration with Google Play, it's worth noting that the financial platform's parent company, Block Inc. (formerly Square Inc (NYSE:SQ).), is trading at a P/E ratio of 93.5, according to InvestingPro data. This indicates that investors have high expectations for the company's future earnings. Moreover, the platform's PEG ratio, which stands at 0.45 for the last twelve months as of Q1 2024, suggests that Cash App's parent company may be undervalued based on its earnings growth rate.
InvestingPro Tips highlight that Block Inc. is expected to see net income growth this year and is trading at a low P/E ratio relative to near-term earnings growth. Additionally, the company has experienced a significant return over the last week, with an 8.06% increase in price total return. These metrics suggest a positive outlook for the company, particularly as it expands its services and integrates with major platforms like Google Play.
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