With 49 million active users and a record $52 billion inflows — including an increase in direct deposits — Cash App is looking more and more like a big, multi-featured, traditional bank than the mobile peer-to-peer payments system it began nearly ten years ago. And this is exactly what Block co-founder and chairman Jack Dorsey want.
“We don’t have statistics on whether we’re primarily against other credit cards or other banks, but that is absolutely our aim,” Dorsey stated on the service’s integrated payment, card, savings, and commerce products during the company’s surprisingly strong third-quarter results call.
Based on the fact that Cash App generated $774 million in gross profit in the three months ending — a 51% increase over the same time last year — it’s reasonable to assume that Block’s new kid is developing.
“We believe that generating inflows per active [user] begins with customers’ capacity to easily fill their Cash App accounts through a variety of channels,” noted CFO Amrita Ahuja on the webcast before detailing the unit’s mainstream march.
“We acknowledge that there are some major issues that all businesses confront today,” Dorsey stated. “It’s critical to provide sellers with simple tools to decrease the burden of running their business,” he said, pointing to Square’s three-pronged goal of providing omnichannel capabilities, growing upmarket, and expanding worldwide.
“We’re building a number of ecosystems to serve different audiences,” Dorsey added. “Square caters to merchants, Cash App caters to users, Tidal caters to musicians, and TBD caters to developers.” But what sets Block apart is our ability to connect all of these.”
