Block Inc. (ASX: XYZ) and Zip Co Ltd (ASX: ZIP) shares both look more interesting to me than they did a couple of years ago.
Block continues to build out Square and Cash App, while Zip has regained momentum and is pursuing a much larger opportunity in the United States.
The question is whether that progress is enough to make either share worth buying in August.
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Block shares
I think Block has one of the most attractive long-term growth runways in the ASX tech sector.
The company owns two powerful ecosystems. Cash App serves consumers, while Square provides payments, software and financial services to businesses. Afterpay's buy now, pay later offering adds another connection between shoppers and merchants.
Cash App's opportunity extends well beyond peer-to-peer payments. Block is steadily turning the app into a financial hub where customers can receive their wages, use a debit card, save, borrow, invest and pay for purchases.
That gives Block several ways to deepen its relationship with existing users. Someone who starts by sending money to a friend could eventually use Cash App as their main financial account.
The strategy appears to be gaining momentum. Cash App gross profit rose 38% year-on-year in the first quarter of FY26, while consumer lending origination volume increased 82%. Block is also expanding Cash App Borrow and bringing buy now, pay later features more closely into the app.
Square provides another substantial growth engine. Its combination of payments, point-of-sale hardware, banking tools and industry-specific software can help sellers manage more of their operations through one platform.
International expansion could extend that opportunity considerably. Square's international gross payment volume (GPV) rose 35% year-on-year in the latest quarter but remains materially smaller than its US volumes (approximately 22% of total Square GPV). This suggests to me that the business still has plenty of room to grow beyond the US market.
I would be happy to buy Block shares in August. Its connected consumer and merchant networks could support many years of growth as more financial activity moves onto its platforms.
Zip shares
I would also buy Zip shares, largely because of the opportunity developing in the US.
US transaction volume increased 43.1% in US dollar terms during the third quarter of FY26, while active customers rose 9% and the merchant network expanded by 17.9%.
But despite this strong growth, it still only has a very small slice of an incredibly lucrative market.
Its partnership with Stripe should help it add merchants at scale. Each new merchant gives customers more places to use Zip, while a larger customer base can make the platform more appealing to retailers.
There is room to deepen engagement as well. US customers are increasingly using Zip for groceries, utilities and other regular expenses. That could make the service a more frequent part of household spending and support higher customer engagement.
In Australia, I think Zip Plus and the new ZMobile offering could broaden the company's relationship with existing customers and create additional revenue streams.
Overall, I believe Zip's US expansion, growing merchant network, and broader product range give it a compelling long-term growth opportunity.
Foolish takeaway
Yes, I would buy both Block and Zip shares in August.
Their strongest opportunity is to become more deeply embedded in how consumers spend, borrow and manage money. Block offers the more diversified ecosystem, while Zip provides greater exposure to a rapidly expanding US business.
Both companies still need disciplined credit decisions and consistent product execution. If they deliver, I think they could be much larger businesses a decade from now.
