Data from app research firm Sensor Tower and Nomura Instinet have shown that increasing downloads of Square’s Cash App is now more popular to that of its competitor, PayPal’s Venmo.
Currently, for the first time, Square’s Cash App has a growing total download of 33.5 million, which surpasses Venmo’s 32.9 million, after an effective July where it increased three times more than Venmo. Both firms had prioritized their peer-to-peer platforms, launching new features in an effort to boost their user base and monetize it.
Square has made efforts to increase the usage of its Cash Card by making it a key part of its product ecosystem. It has included the app with Caviar which has made it possible for instant payments and offered Square traders with an alternative to transfer payroll deposits to employees.
Dan Dolev, an analyst that operates with Nomura Instinet, hopes the new market dominance will increase Square’s shares with an estimated $30 million or 2 to 3 percent of adjusted net revenues in 2018.
The app, usually known as “Square Cash” enables users to send and receive money from friends and accept card payments for your business.
According to Dolev, Square’s dominance is “more than just a bitcoin play.” The payment app continued increasing the drop in crypto prices and a slowdown in downloads of famous cryptocurrency exchanges including Coinbase.
“Interestingly, this relationship seems to go both ways. While Bitcoin prices increased in July and Coinbase downloads accelerated 11 percent, Cash App downloads remained stable at 154 percent, showing little variance from prior months’ growth rates,” Dolev explained.