The news: Payment processor and acquirer Adyen will let its US merchants accept online payments via Cash App Pay, per a press release. Adyen will roll out the payment method for brick-and-mortar stores next year. It’s the first merchant services provider to offer Cash App Pay since Block made it available to merchants that don’t use Square.
Why it’s worth watching: Block is trying to build out the Cash App ecosystem beyond peer-to-peer (P2P) payments. As P2P payments volume growth slows in the coming years, Cash App Pay can help Block monetize the app. It can also help Block increase online payments revenues and compete more aggressively with PayPal, which has a strong checkout presence.
Block’s opportunity: Adyen can help Block expand Cash App Pay to a broader merchant base of larger, more established retailers. The majority of Adyen’s business comes from enterprise customers like Shein and Dick’s Sporting Goods. Integrating Cash App Pay into these retailers’ checkouts can help make the payment method more popular, fueling volume.
Adyen’s benefit: Cash App Pay can help Adyen tighten merchant loyalty. Merchants may be interested in Cash App Pay because it’s likely to appeal to younger shoppers—Cash App users tend to skew younger. This digital-native demographic can help bolster merchants’ online sales.
Related content: Check out our Era of Uncertainty: Merchant Services Providers report to learn about what providers like Block can do to sustain business as economic headwinds pick up.
This article originally appeared in Insider Intelligence's Payments Innovation Briefing—a daily recap of top stories reshaping the payments industry. Subscribe to have more hard-hitting takeaways delivered to your inbox daily.
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