Block Inc.’s Cash App unit perked up in the first quarter, as the company reported that usage and instant-deposit volume for the digital wallet both increased during the period. With Bitcoin activity excluded, revenue for Cash App in the quarter grew $203 million, a 38% jump, compared to the first quarter last year, Block reported late Thursday.
Block referred to increases in both the number of active Cash App accounts and growth in the number of business accounts as propellants for Cash App’s performance. The unit also claimed some revenue from Afterpay, the buy now, pay later platform Block acquired for $29 billion earlier this year. The platform’s revenue is divided between Cash App and Block’s other operating unit, Square.
Cash App allows users to make peer-to-peer payments and trade in Bitcoin and equities. Bitcoin trading activity was depressed during the quarter due to the relative stability in the cryptocurrency’s price, the company said. It reported Bitcoin revenue was cut in half compared to the year-ago period, to $1.7 billion.
The other part of Block, the Square merchant-services business, saw its payment volume grow 15% year-over-year, to $39.5 billion. The company continues to move its acquiring business upmarket in merchant size, with sellers doing $500,000 or more in annual sales accounting for 35% of volume, up from 26% a year ago and 23% in the same quarter in 2020. With Cash App included, payment volume totaled $43.5 billion, 31% growth over the first quarter last year. Cash App’s payment volume grew 39%, to $3.9 billion.
For the quarter, revenue totaled $3.96 billion companywide, down from $5.06 billion a year ago, chiefly owing to the plunge n Bitcoin revenue. Cash App alone generated $2.46 billion in revenue, outpacing Square, which finished with revenue of $1.44.