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."
The company had 7 million active customers on its money-transfer app in December alone, Square said in its recent quarterly letter to shareholders.
The Cash app, which launched in 2015, is growing faster than PayPal's Venmo, according to Nomura Instinet. Since early 2016, Square Cash app downloads have averaged 128 percent year-over-year growth each month versus Venmo's 74 percent growth, according to the Nomura analysis.