While Square Inc’s (NYSE:SQ) Cash app is somewhat of an alternative to traditional banking, it doesn’t look like its growing list of customers is viewing it that way. The company has been surprised to find that customers are treating the app as if it were a regular bank account.
CNBC has the details on Square’s surprise.
Square customers are treating the payment company’s Cash app more like a bank account than the company intended, CEO Jack Dorsey said this week. While that wasn’t a goal, he said Square plans to capitalize on the trend.
“People are using this as their primary banking account, and in some case it’s their only bank account,” Dorsey said on stage at the Consensus blockchain conference in New York this week. “We are reaching an audience that is under-served and even to the point of unbanked, which wasn’t a stated goal but it’s something we love and want to lean into more.”
Square’s cash app was launched back in 2015, and it’s growing at a faster clip than Paypal’s Venmo. According to Nomura Instinet, the Square Cash app is averaging a 128 percent year-over-year growth each month, while Venmo is seeing 74 percent growth.
“Square could become a one-stop shop. Think about a world where you have a Square bank account but also it’s the merchant, so you’re basically you’re able to get around a lot of the fees the banking industry is currently charging,” Nomura analyst Dan Dolev told CNBC.
Square Inc shares rose $0.61 (+1.11%) in premarket trading Monday. Year-to-date, SQ has gained 58.75%, versus a 2.08% rise in the benchmark S&P 500 index during the same period.