Block Inc Class A XYZ

Morningstar Rating

The Long-Term Economics of Block's Business Are Uncertain

Business Strategy and Outlook

We think Block’s legacy Square business model, characterized by efficient client onboarding, innovative point-of-sale devices, flat fees, and an internally developed and integrated set of software and ancillary solutions, allows the company to reach and retain micro merchants that are not viable for other acquirers. We believe Square's initial success came largely from expanding the acquiring market, rather than stealing material share from existing players.

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