Manturov has predicted that Block will grow significantly in value over the coming months following data released by several reports and also information from the Allied Market Research body.
According to reports, the predictive data shows that Block Inc. - the leading card payments fintech within the Square group of companies - lost over 76% of its market value as a result of declines in investor appetites for riskier assets.
But despite this massive hit to the company, data suggests that as the cashless market grows, it will act as a natural growth driver for Block Inc, as all the fintech's solutions are cashless transactions.
"The boost in investor potential also follows the recent acquisition of Afterpay by Block, which will also provide the fintech with additional potential, both through significant growth in the Buy Now Pay Later (BNPL) market and through the addition of a Cash App customer base," explains Manturov.
A cashless society is driving fintech growth
Data shows that the use of cash is diminishing quickly as an increasing number of consumers favour digital payment methods. According to the Smithers report, non-cash payments are expected to grow at a compound annual growth rate (CAGR) of 10.5%, reaching $1.22trn in 2024 and $1.96trn by the end of 2029.
By integrating Afterpay into Block’s Cash App, the fintech can now collect large amounts of data on consumer habits and preferences to use to reach the advertising market. Furthermore, Block has a high growth rate and unlike other fintech companies, generates positive cash flow and has a strong balance sheet. According to the Wall Street consensus, Block trades at a substantial discount to fair market value.
Block Inc and digital payments potential
Founded in 2009 by Jack Dorsey and James McKelvey, Block, Inc. enables merchants to accept card payments and provides them with reports and analytics within the Square segment. The fintech company provides an ecosystem of financial products and services to help users manage their money.
Information collected by Allied Market Research on the fintech market shows the global industry will have an expected value of $698.48bn by 2030.
The sector is continually being driven by innovative ideas and new startups trying to earn their place in the market. This shift has given consumers the expectation of faster and more personalised experiences.
As the market continues to grow, investors can expect to achieve significant returns if they put their money in the right company, say Allied Market Research experts.
Manturov concludes, "When looking into investments of any kind during this market downturn, it is exceptionally important to understand the company. Looking into competitive advantages, history, size, and operation are all crucial for responsible investment."