Square’s cryptocurrency-friendly payment app Cash App is reportedly testing a new feature allowing customers to buy and sell stocks. The startup’s employees began testing the new feature in recent weeks.
According to the company, they are now testing out their Cash App feature which point is to license users to make their free stock trades. And while the exact date of its launch is still not have been announced, employees of the company began trying the new feature in recent weeks.
This is a situation where the free stock trading feature could posture Square as one of the most direct rivals to the fintech startup Robinhood Markets Inc., that, let’s just remind you, earned themselves millions of users only by the decision to offer no-fee trading.
Also, they most recently gathered a valuation of $7.6 billion so this seems to be a big thing. Robinhood has since enlarged into other offerings such as options trading and margin trading, that, as per the sources, would not be offered in Square’s initial product. What actually can happen is that Square’s new service and others like it can be seen as a threat to more established online brokers, like E*Trade Financial Corp.
Devin Ryan, an analyst with JMP Securities said that they are seeing the cadence of free trading increase and that he thinks that’s something the broader industry can’t dismiss.
“As a result, the pricing in those areas will continue to move lower.”
Square’s Cash App began by letting their clients send money to friends, and, since then they had developed into debit cards and Bitcoin trading.