Block

Square Business Segment Commercial Products and Services: Providing a wide range of solutions for various business scenarios, including restaurants, appointment services, retail, offline sales points, online transactions, online checkout, and invoicing. At the same time, virtual terminals, risk and order management tools, as well as payment and commercial application programming interfaces (APIs) are also offered. These products and services help merchants handle transactions more conveniently and improve operational efficiency. For example, a small retail store can easily manage inventory, process customer payments, and utilize the data analysis features provided by Square's point of sale system to understand sales trends and optimize product procurement. Managed payment services and software solutions: Providing managed payment services to simplify the payment process for merchants, ensuring transaction security and efficiency. At the same time, developing various software solutions to assist merchants in managing their businesses. For example, helping merchants with customer relationship management, employee scheduling, inventory tracking, etc., to meet the diverse operational needs of different merchants. Hardware Products: Launch a series of hardware products, such as cash registers, terminal devices, stands, and card readers that support contactless payments and chip payments. These hardware devices, combined with software services, provide merchants with a complete offline payment solution. For example, Square's portable card reader can be directly connected to a smartphone or tablet, allowing small business owners to easily accept credit card payments while on the go or at temporary stalls. Financial services: covering banking services such as lending, instant transfers, checking, and savings accounts. Providing financial support to merchants to help them solve cash flow issues and promote business development. For example, eligible merchants can apply for small loans offered by Square for purchasing goods, expanding operations, etc. At the same time, the instant transfer service allows merchants to quickly access sales proceeds, improving the efficiency of fund utilization. Value-added services: Provide loyalty programs, marketing tools, team management, and payroll services, as well as gift card business. Through the loyalty program, merchants can attract repeat customers and increase customer retention; marketing tools help merchants develop promotional strategies and expand brand influence; team management and payroll services reduce the burden of human resource management for merchants. Cash App Business Segment Financial tools: Providing individual users with a variety of financial tools, including peer-to-peer payment functions, making it easy for users to transfer money quickly between each other. At the same time, it supports Bitcoin trading and stock investment brokerage services, allowing users to participate in cryptocurrency and stock market investments. For example, users can easily transfer money to friends and family through Cash App without the cumbersome bank transfer procedures; they can also conveniently buy and sell Bitcoin or invest in stocks they believe in. Cash App Card: This is a debit card linked to the user's Cash App account balance, allowing users to make purchases or withdraw cash from ATMs, enhancing the convenience of using their funds. Other services: Direct deposit services are provided to facilitate users in receiving salaries and other income; the Cash Boost service offers users cashback and other discounts; there is also a tax filing service to help users complete tax-related matters. In addition, the subsidiary Afterpay is a "buy now, pay later" platform, allowing users to choose installment payments while shopping, alleviating the pressure of one-time payments. Other businesses Tidal: It is a music platform aimed at building an interactive bridge between musicians and fans, helping musicians to commercialize their brand and generate revenue through the platform. TBD: As an open developer platform, it focuses on making the decentralized finance world more accessible and promoting the development of decentralized finance. Bitkey: It is a simple self-custody wallet for Bitcoin, providing users with a secure way to store Bitcoin. Proto: is a set of Bitcoin mining products and services, involved in the field of Bitcoin mining.

Transaction fee income: In the Square business segment, whether for offline or online transactions, when merchants process customer payments through Square's payment system, the company charges a transaction fee at a certain percentage. This is one of its main sources of profit, and as the scale of merchant transactions expands, the fee income also increases accordingly. For example, for a $100 credit card transaction, Square may charge a fee of $2 to $3. In the Cash App business segment, when users make peer-to-peer transfers, a certain fee will also be charged if it involves cross-border transfers or if special services such as expedited transfers are selected. Financial service income: Interest and related fees are charged to merchants through the lending services provided by Square. After obtaining a loan, merchants are required to repay according to the agreed interest rate and term, from which the company derives profit. In the stock investment brokerage service of Cash App, transaction commissions may be charged; the company earns a certain percentage of commission income for each stock buy and sell transaction conducted by users. For the use of the Cash App card, if users perform certain specific actions, such as withdrawing cash from non-partner ATMs, fees may also be charged. Value-added service charges: Square offers loyalty programs, marketing tools, and other value-added services. Merchants need to pay corresponding fees to use these premium features. For example, merchants using Square's professional marketing package can obtain customized promotional plans and precise customer data analysis, for which the company charges a subscription fee. In Cash App, the Cash Boost service's promotional activities may require users to pay a certain fee to unlock higher cashback benefits. Other business income: The Tidal platform generates revenue through user subscription services, where users pay a monthly or annual fee to enjoy ad-free music playback, high-quality audio, and other services. In addition, Tidal may also earn revenue through profit-sharing collaborations with music companies and artists, such as in music promotion and exclusive content releases. For Proto's Bitcoin mining products and services, the company may profit by selling mining equipment and providing mining power leasing services.

Transaction fee income: steadily and directly brings cash flow to the company. As the company attracts more and more merchants and users globally to use its payment services, the transaction scale continues to expand, and the fee income steadily grows, becoming an important financial guarantee for the company's ongoing operations and development. This income model is based on a large transaction base, is relatively stable, and has strong growth potential as market share increases. Financial service revenue: Expanded profit boundaries by leveraging the user data and credit assessment capabilities accumulated by the company in the payment field to develop financial services. On one hand, it provided more value to merchants and users, addressing their funding and investment needs; on the other hand, it created new profit growth points through the collection of interest, commissions, and fees. For example, lending services help cash-strapped merchants maintain operations or expand their businesses, while the repayment process generates revenue for the company and also enhances merchants' stickiness to the Square platform. Value-added service charges: Meeting the personalized needs of different users and merchants enhances user experience and customer satisfaction. By providing a variety of value-added services, the company can tap into the value of users and merchants at different levels, increasing their willingness to pay. Merchants are willing to pay for value-added services that improve business efficiency and increase customer loyalty, while users may also be willing to pay for more convenient and favorable financial service features, further enhancing the company's profitability. Other business income: Diversifying the company's operations reduces reliance on a single business. Tidal's development in the music field, leveraging the enormous market potential of the music industry, has opened up new revenue channels for the company while also enhancing its brand image and cultural influence. Proto is involved in the Bitcoin mining sector, and with the development of the cryptocurrency market, if managed properly, it is expected to become a new pillar of profitability. A diversified business layout helps the company maintain stable profit growth in different market environments.

Bitcoin ( BTC ) Trading Promotion: Cash App supports Bitcoin transactions, providing a convenient channel for a large number of users to buy and sell Bitcoin. Users can easily purchase, sell, and store Bitcoin on the Cash App platform. This convenient trading experience has attracted many investors who were originally interested in Bitcoin but were deterred by the complexity of operations, greatly promoting the trading activity of Bitcoin. As more and more users participate in Bitcoin trading through Cash App, the market liquidity of Bitcoin is enhanced, and the trading scale continues to expand. For example, during periods of significant price volatility for Bitcoin, the trading volume of Bitcoin on Cash App often increases significantly, as users conduct buy and sell operations based on market conditions, intensifying the price fluctuations of Bitcoin. Price Impact: Block, Inc.'s large-scale trading activities in the Bitcoin market have a certain degree of influence on Bitcoin's price trends. When the company buys a large amount of Bitcoin, the demand for Bitcoin in the market increases, which may drive the price of Bitcoin up; conversely, if the company sells a large amount of Bitcoin, the supply of Bitcoin in the market increases, which may lead to a price drop. Although the Bitcoin market is vast, Block, Inc.'s trading behavior cannot completely dominate the price, but it does have a certain influence on price fluctuations in the short term. Additionally, Block, Inc.'s Bitcoin trading activities can also affect the sentiment and expectations of market investors. If the company continues to be optimistic about Bitcoin and increases its holdings, it may attract more investors to follow suit and buy in, enhancing market confidence in Bitcoin; conversely, if the company reduces its Bitcoin holdings, it may trigger panic selling among some investors. Ecological Promotion: The company is committed to promoting the development of decentralized finance through its subsidiary platform, TBD. As an important foundation of decentralized finance, Bitcoin's ecosystem benefits from this. The innovative initiatives and technological research and development of the TBD platform may improve Bitcoin's trading environment, security, and scalability, further promoting Bitcoin's application and acceptance globally. For example, the TBD platform may develop more efficient Bitcoin wallet management tools, more secure transaction verification mechanisms, etc., all of which contribute to enhancing the overall performance of the Bitcoin ecosystem.