With the rise of cash app services like Venmo, PayPal, Square and more, investors may be wondering which cash app stocks are best to invest in. Cash apps have exploded in popularity in recent years, allowing users to easily send and receive money digitally. As cash app usage grows, the companies behind the top apps stand to benefit financially. In this article, we’ll explore some of the top publicly traded cash app stocks that investors should consider buying. Key factors to evaluate include number of active users, revenue growth potential and business model diversification beyond just cash transfers. Top picks include PayPal and Square which have leading cash apps as well as broader financial services ecosystems.
PayPal’s Venmo leads in cash app user base and engagement
PayPal’s Venmo app is a top choice for cash app stock investing thanks to its massive user base and high engagement. Venmo has over 80 million active user accounts, dwarfing competitors. And Venmo users open the app multiple times per week on average, showing strong engagement. Beyond peer-to-peer payments, Venmo has monetization potential through merchant payments, debit cards and more financial services. With PayPal’s large scale and resources behind it, Venmo is well-positioned for continued growth.
Square’s Cash App expanding beyond payments
Square’s Cash App is another leading cash app serving over 40 million active users. The app allows fast digital money transfers between users. But increasingly, Cash App is expanding into financial services like stock and Bitcoin trading. These services earn fees for Square while driving up engagement. And Square continues to unveil new user-friendly features like direct deposit paychecks which attract new demographics. With strong growth ahead, Square stock is appealing for investors bullish on the cash app space.
PayPal and Square have broader ecosystems beyond cash apps
Importantly, PayPal and Square have diverse business models that go far beyond just cash apps. Both facilitate merchant payments and offer small business services. This provides multiple revenue streams and growth opportunities beyond cash transfers between consumers. PayPal has over 400 million active user accounts thanks to brands like PayPal itself and Braintree. Square sellers processed over $150 billion in payments in 2021. The breadth of their financial services ecosystems make PayPal and Square top stocks to buy for investor exposure to the fast-growing cash app space.
PayPal and Square stand out as two of the best cash app stocks for investors to buy thanks to their market-leading cash apps Venmo and Cash App as well as diverse financial services ecosystems. Their massive user bases, high engagement and future monetization potential give PayPal and Square stocks sizable growth runways.