Banks

Square may start acting more like a bank using its hit Cash app

Key Points
  • The start-up run by Twitter CEO Jack Dorsey may start acting more like a bank.
  • Square is open to expanding the current peer-to-peer offerings of its Cash App, Square Chief Financial Officer Sarah Friar said at Recode's annual Code Commerce conference in New York Tuesday.
  • “Anything you do today with a bank account, you should look to Cash App to begin to emulate more and more of that,” Friar said. 
Sarah Friar of Square 
Keith MacDonald/(MainStage) and Adam Tow for Vox Media

Square's peer-to-peer payment app could start looking way more like your average bank account.

The payment company is considering "lots of ideas" like saving products and a way to let customers trade stocks, Square Chief Financial Officer Sarah Friar said at Recode's annual Code Commerce conference in New York Tuesday.

"Anything you do today with a bank account, you should look to the Cash App to begin to emulate more and more of that," Friar said.

She emphasized that while this is still just an idea, the sheer amount of money the the average customer was storing on the app sparked talk of the possibilities.

"It's definitely a big balance. And we're starting to think about, are there other things we could do for our customers there? Maybe help them with their savings — how can we help them make their money work for them?" she said.

Square CEO Jack Dorsey pointed out in June that customers were already treating the Cash app more like a bank account. While it wasn't a goal, Dorsey said at the time that Square plans to "lean into" the trend.

The San Francisco-based company is best known as a credit card processor but also offers payment hardware. Its peer-to-peer Cash App is growing faster than PayPal's Venmo, according to a recent Nomura report. The company has also upped its presence in small-business lending through Square Capital, and recently partnered with eBay in July.

The Cash App had a breakout second quarter with customers spending a total $250 million with Cash Card, nearly triple the amount they did in December, and representing $3 billion on an annualized basis.

Shares of the company have surged more than 200 percent year over year, and are up more than 20 percent in the past month alone. The stock was up roughly 1 percent Tuesday, trading near $88.