81 Closed-Loop Payment Volume In The US Could Increase 24-Fold By 2030 According to ARK’s research, total C2B digital wallet payments should increase 20% at an annual rate during the next seven years, from ~$2 trillion in 2023 to ~$7 trillion in 2030. As a percent of the total, closed-loop payments should increase from ~4% to 25%, taking the payments revenue forecast for Block’s Square, Shopify, and Toast from $3.5 billion to ~$21 billion, a 29% annualized rate of gain.** US Digital Wallet Transaction Volume* US Payment Revenue For Block's Square, Shopify, And Toast S Open Loop Closed Loop % of PCE (RHS) Net Payment Revenue Closed Loop Payment Revenue Opportunity T E L L n ) A $8 30% io ns $25 W t ) p io L $7 l A ns 25% m il T u B $20 I io G l $6 ns ($ il 20% CAGR DI r 20% o e 29% CAGR T C $5 nu $15 ($ nal e e $4 15% o v m s e r R u e $10 l $3 P nt 10% Vo e f B $2 o 2 aym $5 C $1 5% nt P ce r B $- 0% e 2 P C $- 2018 '19 '20 '21 '22 '23E '24E '25E '26E '27E '28E '29E '30E 2019 '20 '21 '22 '23E '24E '25E '26E '27E '28E '29E '30E *We define closed-loop transactions as any consumer-to-buyer (C2B) digital wallet transaction that does not involve third-party issuers or card networks except for digital wallet balance top-ups. **Closed-loop payment revenue is represented on a gross basis and will be shared between the software platforms and all enabling market participants such as other fintechs or sponsoring financial institutions. We primarily model Block’s historical revenue and future revenue opportunity across its Square merchant ecosystem and do not incorporate Cash App or Afterpay revenues independent of Square. Sources: ARK Investment Management LLC, 2024. This ARK analysis is based on a range of underlying data from external sources, including Worldplay 2019, 2020, 2021, 2022, 2023, 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.