Square’s Future Needs to Take Shape

Square ’s area greatly expanded during the depths of the pandemic. Now it needs to fill in that space.

A boom driven in part by people depositing and spending stimulus checks helped grow Square’s consumer Cash App to a huge base of about 40 million monthly transacting active customers by the middle of this year. That phase looks to be ending: While third-quarter customer balances in Cash App were still more than double what they were a year ago, they declined sequentially from the second quarter, as special government disbursements in the U.S. mostly ended.