Square’s two main businesses are roaring. Now analysts see ‘tremendous potential’ in linking them

 Square’s two main businesses are roaring. Now analysts see ‘tremendous potential’ in linking them

Both sides of Square Inc. seem to be clicking as the economy strengthens, and now analysts are excited about the possibilities for Square as the company begins to connect its merchant and Cash App businesses together.

Shares of Square
SQ,
+6.78%

are up 6% in Friday morning trading after the payments company posted first-quarter results that highlighted rebounding merchant dynamics as well as continued momentum for the consumer-facing Cash App wallet, which has proven increasingly popular during the pandemic.

Though Square’s merchant and Cash App businesses operate separately, analysts have long been excited for the company to start driving links between the two entities, and the company gave a glimpse of that in its Thursday shareholder letter. Square discussed how, in the first quarter, it integrated its merchant loyalty program into the Cash App, so that customers who earn…

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