Block, inc.[Tick: SQ], Will Apple’s “Tap to pay” contactless payment function on the iPhone threaten Block’s business?

I have been observing Block's stock for a while, and I think it is at an attractive pricepoint, last seen in Q3 2020; as it has dropped over 50% since its peak.

But, now I'm having doubts over its longer-term growth and viability because of Apple.

Apple recently introduced a Tap-To-Pay function on its iPhone, quote:

The new capability will empower millions of merchants across the US, from small businesses to large retailers, to use their iPhone to seamlessly and securely accept Apple Pay, contactless credit and debit cards, and other digital wallets through a simple tap to their iPhone — no additional hardware or payment terminal needed.

This looks to me like a direct challenge to Block's business model, with Square's terminal and Cashapp ecosystem.

They also mentioned:

Stripe will be the first payment platform to offer Tap to Pay on iPhone to their business customers, including the Shopify Point of Sale app this spring. Additional payment platforms and apps will follow later this year.

Cashapp and the Square terminal are Block's lifeline and a major driver in their business; although this only targets the B2C side, it is still a direct challenge to Block's dominance in this area, as Block offers financial services and POS terminals to businesses which tie into their Cashapp and recent BNPL ecosystem.

Do you guys think Apple will be able to pose a direct threat to Block's business?


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