77 Vertical Software Platforms Are Consolidating Financial Services In addition to enabling core business operations, vertical software providers like Block, Shopify, and Toast are consolidating financial services for merchants. With digital wallets at their core, and partnering with sponsor banks and fintech companies or activating their own banking charters, vertical platforms should eliminate myriad merchant interactions with less efficient legacy financial institutions. Consumer* Merchant S Digital Credit Working T Payroll Checking** Savings Debit Card Capital Bill Pay*** E Wallet Card L Financing L A W L A Block T I G DI Shopify Toast *We consider Block’s Cash App and Toast’s MyToast mobile app as consumer digital wallets, and we consider Shopify’s Shop mobile app and Toast’s Toast Takeout mobile app as digital wallets in their early stages. **We consider Shopify Balance as both a checking and savings vehicle for merchants. ***Given xtraCHEF’s invoice automation features, we believe Toast will soon offer direct bill pay on its platform. Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of underlying data from external sources, which may be provided upon request. Forecasts are inherently limited and cannot be relied upon. For informational purposes only and should not be considered investment advice or a recommendation to buy, sell, or hold any particular security. Past performance is not indicative of future results.