Recently, I made the comparison between Mogo and the Square Cash App. For those of you that missed it, the two applications have quite a few similarities. In fact, I explained why I believe Mogo Inc. (MOGO, Financial) is the Square Cash App of Canada.
With news released by Mogo this morning, that comparison has become even easier to make, outlining why investors should be very excited about Mogo's future.
The news
In a press release issued this morning, Mogo announced that it will soon be adding another service to its repertoire, bridging the only major gap between the company's app in Canada and the overwhelmingly popular Square (SQ, Financial) Cash App.
Soon, Mogo will be offering peer-to-peer payment services. Through the Mogo app, Canadians will soon be able to send payments to friends and family members with the click of a button on their cell phones.
While Square has made this possible through the cash app in the United States for some time now, there are no similar, simple, peer-to-peer solutions in Canada.
So essentially, as the Square Cash App made these types of payments popular in the United States, Mogo is poised to do the same in Canada.
The comparison goes far deeper
The news released by Mogo this morning only makes the comparison easier to make, the icing on the cake so to speak… but there's an entire cake to speak of here.
One of the factors that made the Square Cash App such a successful company is timing. The application was one of the first in the U.S. to help simplify finances for consumers at a time when traditional banking services reigned supreme.
Today, around 57% of Americans use digital wallets, with Square being the king of the sector in the region. Mogo is following along the same lines.
While the majority of Americans use digital wallets today, the same can't be said for Canada. In fact, when compared to other developed nations, Canada seems to be the slowest to catch on to the digital finances trend.
One of the big reasons for that is, before Mogo, there haven't been options that make finances simple through digital applications.
The fact of the matter is that as the Square Cash App was one of the pioneers in the U.S. fintech market, Mogo is a pioneer in the Canadian space. Moreover, even before the company announced it will be launching a peer-to-peer payments service, Mogo has been seeing strong uptake in the Canadian market, recently disclosing that it has more than one million active members.
So what are these members into outside of payment services?
Like Square's app, the Mogo app offers a diversified product offering. Prior to the announcement that it will be launching a peer-to-peer payments service, Mogo already had an impressive lineup of services.
Just like Square was the first company to offer a wide range of application-based financial services in the United States, Mogo is the first to offer a wide range of similar services in Canada. Now, with the company adding peer-to-peer payments to its service roster, this comparison becomes even more powerful.
Why is this important?
Because this outlines a huge opportunity! Getting involved in Mogo now is like getting involved in Square at pre-initial public offering pricing. While the company is public, it's traded at a heavy discount as investors don't have any other Canadian company to compare it to from a valuation perspective. As such, the stock trades at pennies on the dollar when compared to American, British and Australian counterparts.
Nonetheless, the opportunity is clear and these discounts won't last forever. The fact of the matter is that the peer-to-peer payments service is the final service that ties the knot between the Cash app and the Mogo app. With Canadian uptake of fintech services beginning to take hold and the fact that Mogo is the pioneer in the space, as Cash App was, and is, in the U.S., the potential for dramatic long run gains out of Mogo ahead is hard to ignore.
This article was originally published on Alpha Stock News. Read all relevant disclosures and statements on the original article.
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