86 Digital Wallets Could Generate $23 Billion In Vertical Software Revenue According to ARK’s research, the core revenue of Block’s Square, Shopify, and Toast should increase 22% at an annual rate during the next seven years, from $7 billion in 2023 to $27 billion in 2030. Closed loop consumer payments, merchant banking, and employee payroll/payments could generate an additional $23 billion, accelerating revenue growth from 22% to 33% at an annual rate by 2030. US Revenue Opportunities For Block’s Square, Shopify, And Toast* Core Revenues Closed Loop Payments Merchant Banking Payroll Software Employee Payments S T E $60 L L A $50 W L A T ns $40 33% CAGR I io G l DI il $30 B $ $20 $10 $- 2019 '20 '21 '22 '23E '24E '25E '26E '27E '28E '29E '30E *Core revenues include software revenue, net open-loop payment revenue, merchant lending revenue, and revenue attributable to all other extant business lines. Merchant banking revenue includes both net interest income and noninterest revenue attributable to merchant deposits and lending not already captured by our forecast for Block, Shopify, and Toast’s working capital financing business. All revenue segments excluding net open-loop payment revenue, closed-loop payment revenue, and employee payment revenue are represented on a gross basis, and all revenue will be shared between the software platforms and all enabling market participants such as other fintechs or sponsoring financial institutions. We use our status quo forecasts the software platforms’ net take rates to estimate net employee payment revenue and do not explicitly estimate incremental cost synergies from employee closed-loop payments. We view all revenue segments except for core revenues not as explicit forecasts but as addressable opportunities in the US for Block’s Square, Shopify, and Toast. 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, 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.