While Square is currently looking up at the Top-100 stocks, it’s not so far-fetched to think that the company could easily surpass the size of many of today’s biggest banks and financial institutions. At the time of this writing, Square has a market cap of $69 billion, while a financial giant like JPMorgan Chase is more than 4.5 times bigger, valued at $313 billion. As a payment processor, Square could even target Visa, and its $420 billion market cap. Will Square take all of Visa’s customers tomorrow? No. But, as technology proves to be invaluable to the financial world, Square will slowly begin to eat away at the customer base held by outdated, bloated financial institutions.
Square innovates away the competition
There is no denying that digital banking is the future of commerce. It’s not just that the coronavirus pandemic has forced the hand of so many consumers and businesses into digital banking, it's that Millenials and Gen Z don’t just view mobile banking as a nice feature, they see it as an absolute need. According to a PWC study, 67% of Millenials are already using, or are considering using mobile banking, compared to 60% of Gen X and 46% of Baby Boomers. Luckily, this is where Square excels. The company has invested heavily into mobile banking and payment processing solutions. It has been helping companies process payments with a smartphone since 2010 and has improved on its offerings since then.
It’s not just that Square is ahead in digital banking, unlike some of its counterparts, Square is ahead of the curve in digital currency adoption as well. The company already has a patent on technology that allows merchants to accept payments in cryptocurrency.
Next stop, banking
Recently, the company received approval from the FDIC to open its own bank, Square Financial Services. By 2021, Square is expected to provide small businesses with an array of banking products. Banking is the next logical move for Square, which will easily be able to integrate mobile banking, point-of-sale (POS) and its other technology directly with its financial service offerings.
Submitted September 04, 2020 at 09:39PM by mansoortaken https://ift.tt/3h7X1Bm
