Quarterly GPV (gross payment volume) of Block (Square) payments 2015-2024, in USD

In the first quarter of 2024, the gross payment volume of Square's owner Block had grown by 6.5 percent compared to the same quarter one year before – a decrease in growth. Although the absolute value of payments processed by the company formerly known as Square reached an all-time high in Q1 2024, year-on-year percentage changes kept declining when compared to 2021. This could be attributed to slower growth in cryptocurrency popularity since late 2021, a hallmark of Block's business model.

Square: A focus on North America

The brand Square is one of several payment gateways that exist within North America. The United States payment gateway market was estimated at 38 billion U.S. dollars in 2023, a higher total than various countries combined. Square is a predominantly focused on North America: Seven out of 10 websites worldwide that use Square as a check-out option in 2023 came from either the United States or Canada. The company Square was acquired by and legally changed into Block in December 2021, although the brand name Square continued to be used. Shortly after, Block announced its takeover of BNPL brand Afterpay — an Australian brand that also was popular in the United States — to further extend its payment ecosystem.

Company performance: Achieving the Rule of 40

Block's quarterly GPV reveals the company faced declining growth. The company announced in Q3 2023 it had to refocus operations to achieve the so-called Rule of 40 by 2026. This meant the combined gross profit growth and adjusted operating income margin had to reach or go beyond 40 percent. To reach this, Block announced it would put a cap on new hires, possibly lowering their number of employees before the end of 2024 to increase the company's operating margin. The changes follow after Block recorded several quarters in a row of negative net income.