Block adds AI voice ordering and purchase prep tools
Block rolls out AI voice ordering for Square diners and AI‑driven purchase‑order software for merchants, boosting payment volume and opening a new licensing opportunity.
Block, Inc. disclosed that it is deploying artificial‑intelligence tools on both sides of a transaction. For Square merchants, a new Square Kiosk lets diners ask menu questions and place orders by voice. On the seller side, the Squaremates platform now drafts purchase orders for food‑and‑beverage businesses, and the company is testing AI agents that could help manage inventory and order from suppliers.
CEO Jack Dorsey said the goal is to give small sellers “something that’s really easy to use and… immediately accessible.” The AI features are being trialed through Block’s Builder Lab and Buzz programs, with pricing models still under evaluation.
Why the AI rollout matters
Embedding AI in the checkout and procurement process could tighten the link between Block’s two flagship products – Square and Cash App – and make the ecosystem more sticky for merchants and consumers. The move also signals Block’s ambition to package its AI capabilities for other companies, a market that analysts compare to the cross‑border payments AI space, where emerging agents are projected to handle a measurable share of global flows.
Key numbers from the third quarter
Square processed $76.4 billion in Q3, up 14% year over year.
Food‑and‑beverage payment volume grew 20%; retail volume rose 13%; services volume rose 8%.
New sellers joining via independent sales organizations jumped 90% from the prior quarter.
Cash App reached 60 million monthly transacting users in September, a 4% year‑over‑year increase.
Cash App consumer‑loan originations rose 40% to $19 billion.
Primary banking users grew to 9.4 million from 8.3 million a year earlier.
About 28 million customers used the Cash App Card each month.
Neighborhoods, the program linking Cash App users with Square sellers, was active for roughly 30,000 sellers and represented about $5 billion in annualized gross payment volume by September.
Third‑quarter net revenue climbed to $6.7 billion from $6.1 billion a year ago.
What the rollout means for investors, consumers and the industry
Investors see two potential revenue streams: higher transaction volume from AI‑driven ordering and procurement, and licensing fees if Block sells its AI tools to third‑party merchants. The 14% rise in overall payment volume and the fastest‑in‑a‑decade growth in independently signed‑up sellers suggest the AI features could accelerate merchant adoption, which may translate into stronger top‑line growth.
Consumers could enjoy faster, hands‑free ordering at restaurants and more personalized offers through the Cash App “Neighborhoods” program. The shift of Cash App’s Borrow product to a six‑week term with a 7.5% fee (up from a 5% fee for four weeks) may affect cost of short‑term credit for users.
Industry players will watch Block’s pricing experiments in Builder Lab and Buzz. If the AI tools prove cost‑effective for small merchants, larger payment processors may feel pressure to add comparable capabilities, potentially reshaping the competitive landscape for point‑of‑sale technology.
What to watch next
Analysts will monitor several indicators:
Adoption rates of the Square Kiosk and Squaremates AI purchase‑order service among new and existing merchants.
Revenue contribution from AI licensing as Block moves from testing to commercial rollout.
Changes in Cash App’s loan‑originations and fee structures, especially how the higher Borrow fee impacts user demand.
Growth of the Neighborhoods program and whether its $5 billion‑plus payment volume scales further.
Block’s next earnings call should reveal whether the AI tools are generating measurable incremental revenue and how the company plans to price them for broader enterprise use.
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