Six years in, Square’s bank-replacement Cash App has found its customer niche, CEO Jack Dorsey told attendees at the Consensus blockchain conference on Wednesday. The core demographic for Cash App: unbanked and underbanked consumers.
“It was not a stated goal initially, but it’s something we want to lean into,” Dorsey said.
Based on a 2015 survey, the Federal Deposit Insurance Corporation estimates that approximately 35 million U.S. households have no bank account or have obtained financial services outside of the traditional banking system. In December 2017, Square told investors that Cash App had over 7 million active users.
Dorsey said he is encouraged by users’ growing loyalty to the app, as evidenced by their spending habits. The most popular merchants in Cash App are Walmart and McDonald’s, he said; among apps, ride-hailing services like Lyft and Uber are popular.
“This is everyday usage,” he said. “We have evidence to show that people are using this as their primary spending device and primary banking account, and in some cases their only banking account.”