Block shares gain 29.6% as Square wins Sherwin-Williams deal

Square's payment and business management tools are now available to Sherwin-Williams PRO+ contractor customers across the US and Canada, giving Block Inc. a direct channel into the professional trades market.

Square, the payments arm of Block Inc. (NYSE: XYZ), has been selected by Sherwin-Williams, the world's largest paint and coatings company, as the newest partner in its Digital Alliance Program. The deal puts Square for Services — an all-in-one platform for creating estimates, scheduling jobs, collecting payments and managing client relationships — in front of the paint giant's network of professional painters, contractors and designers.

"Square's tools help service professionals streamline their operations so they can focus on the work that matters most," Roshan Jhunja, Head of Square for Services, said. "We're thrilled to be part of the Sherwin-Williams Digital Alliance Program and to put Square's tools directly in front of the skilled trade professionals who power this industry."

Square for Services lets contractors send custom estimates and professional invoices, accept credit and debit cards, ACH bank transfers, Apple Pay and Google Pay, and manage client relationships through an integrated customer directory and messaging tools. Square Invoices enables painters to collect deposits upfront, schedule milestone payments across a single invoice, set up recurring billing for long-term clients and send automatic payment reminders. Square Checking provides instant access to funds, reducing the cash flow friction common in project-based work.

"The Sherwin-Williams Digital Alliance Program was built to provide our PRO+ customers with industry-leading digital tools and exclusive offers to help save them time, money, and grow their business with confidence," said Justin Biel, Vice President of PRO+ Marketing at Sherwin-Williams.

What the deal means for Block

The partnership gives Square a distribution advantage in the professional services vertical, a market where fragmented payment solutions have long been the norm. Rather than marketing directly to individual contractors, Square now gains credibility through Sherwin-Williams' established retail footprint and brand trust with its PRO+ customer base. For Sherwin-Williams, the program deepens customer stickiness by embedding digital tools into the contractor workflow.

Block shares have rallied 29.6% over the past three months, compared with the industry's 3.5% gain, according to Zacks data. The company carries a Zacks Rank #1 (Strong Buy). The Sherwin-Williams deal could accelerate Square's revenue growth by expanding its merchant base in the trades sector, where payment volumes tend to be recurring and project-based.

Competitive landscape

Square competes with a range of payment and business management platforms targeting small and mid-sized service businesses. Stripe, the largest private fintech by valuation at $65 billion as of its most recent tender offer, focuses on online payments and does not offer the same suite of on-site service management tools. Toast Inc. (NYSE: TOST) dominates the restaurant vertical but has not expanded into general contractor workflows. Housecall Pro, a Field Nation company, targets home services but lacks Square's payment processing scale — Square processed $235 billion in total payment volume in 2024, according to Block's annual filing.

By embedding its tools inside Sherwin-Williams' ecosystem, Square creates a moat that pure-play software competitors cannot easily replicate: the contractor who manages estimates, invoices and payments through Square is less likely to switch platforms than one who adopted Square independently.

Investor takeaway

Block trades at roughly 2.5x forward sales, a discount to the broader fintech peer group, reflecting investor skepticism about its growth trajectory and the regulatory overhang from its Bitcoin and Cash App businesses. The Sherwin-Williams partnership addresses one of those concerns directly — it demonstrates Square's ability to win enterprise distribution deals that expand its merchant base without proportional increases in sales and marketing spend. If Square converts a meaningful share of Sherwin-Williams' PRO+ customers, the deal could improve Block's unit economics by lowering customer acquisition costs and increasing average revenue per merchant.

This article is for informational purposes only and does not constitute investment advice.