Why Block’s Apple News Driven Its Stock Price Today

What happened

At a meeting of two giant minds from the fintech and big tech industries, To block (NYSE:SQ) and Apple (NASDAQ:AAPL) collaborate on a new offer. On Thursday morning, Block announced the move, and bullish investors sent the stock up nearly 7% in response.

So what

Block and Apple are working together to bring the latter’s Tap to Pay functionality, currently an option on its popular iDevices, to Block’s Point of Sale app. Once implemented, this will allow holders of these devices to use them for contactless payments at Block terminals hosting the app.

Image source: Getty Images.

Block did not disclose the financial terms of this collaboration with Apple. He said in his announcement that

This is backed by Square’s powerful software that helps sellers drive more business through marketing and loyalty programs; easily track and manage product inventory; and even simplify their cash flow with business banking tools that give them instant access to their Square sales.

According to data from several research companies, Apple’s iPhone is currently the most popular smartphone in the United States, Block’s main market. Counterpoint Research, for example, claims that the tech giant’s familiar device accounted for more than half of all smartphone shipments in the United States last year.

Now what

Block is always looking to expand its payment ecosystem and make it as convenient and accessible as possible for customers who want to transact with Block’s customers. It’s particularly encouraging that Block is currently trying to do this with iPhone owners, as they now represent a large part of the US economy.

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Eric Volkman holds positions at Apple. The Motley Fool has positions and recommends Apple and Block, Inc. The Motley Fool recommends the following options: March 2023 long calls at $120 on Apple and March 2023 short calls at $130 on Apple. The Motley Fool has a disclosure policy.

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