83 Merchant Digital Wallet Revenue Could Double By 2030 If net deposit yields were to equal those of large commercial banks, the merchant banking revenue associated with Block’s Square, Shopify, and Toast could scale 40% at an annual rate during the next seven years, from $700 million in 2023 to $7 billion in 2030. At $7 billion, the three platforms would 5x their share of total commercial payments revenue in the US from ~0.3% today to ~1.6% in 2030. Addressable US Merchant Banking Revenue For Block's Square, Shopify, And Toast* S Merchant Lending Incremental Banking Revenue T E L $8 L A W ) $7 L ns A io $6 T l I il G B DI $5 ($ e $4 nu e $3 v e R $2 s s o $1 Gr $- 2019 '20 '21 '22 '23E '24E '25E '26E '27E '28E '29E '30E *Our incremental banking revenue forecast intends to capture both net interest income and noninterest revenue associated with merchant deposits and lending that are not already included in our forecast for Block, Shopify, and Toast’s working capital financing business. Both line items are 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. This forecast does not directly include revenue from instant transfers, corporate card issuance and spend management, or bill pay. 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 McKinsey & Company 2018, 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.