Financial Inclusion at Scale: $100 Billion in Impact

In a moment when economic uncertainty is pushing many to tighten their budgets, access to flexible, responsible credit matters more than ever. Nearly 100 million Americans are locked out of affordable credit – either "credit invisible" or considered "subprime" by traditional standards. But what if we told you that many of these individuals are actually responsible borrowers who simply haven't had the right opportunities? In our white paper, "A Modern Approach to Credit", we outlined our vision for a more inclusive financial system and how we’ve extended over $100 billion in credit globally while maintaining strong portfolio performance.

Unlike traditional lenders, our decisions are based on how people earn, spend, save, and repay in real life, not just outdated credit files. The numbers tell a compelling story, but the real impact lies in who we're serving. Through Square Loans, 58% of our lending goes to women-owned businesses, tripling the industry average of 19%. Through Cash App Borrow, we're successfully serving customers who would typically be rejected by traditional lenders – 70% of our borrowers have FICO scores below 580, yet maintain a remarkable 97% repayment rate. And through Afterpay, we're helping younger generations access credit responsibly, with loss rates below 1% while approving 13% more customers than traditional models would suggest.

These aren’t just statistics. They represent real people and businesses who have been left out of traditional systems, now getting the opportunity to build stability and move forward. Like a small business owner who was denied traditional bank loans but used Square Loans to expand to a second food truck, creating new jobs in their community. Or a gig worker who uses Cash App Borrow to manage irregular income streams, avoiding the rates of payday lenders. These stories, multiplied across millions of customers, show how responsible innovation in credit can drive both financial inclusion and business success.

The traditional credit system has created significant barriers for far too many Americans. Black, Hispanic, and low-income consumers are nearly twice as likely to be credit invisible or unscorable compared to White consumers, and young adults, immigrants, and gig economy workers are frequently excluded despite demonstrating responsible financial behavior. This isn't just an individual problem – it's a systemic issue that affects entire communities and limits economic growth.

Our approach directly addresses these challenges through three key innovations:

• Near real-time data analysis that captures current financial health, not just historical credit behavior
• A responsible growth model that starts small and grows with customers as they demonstrate positive financial behavior
• Dynamic risk assessment that adapts quickly to changing economic conditions

The impact of our inclusive approach reaches across diverse communities:

• Small Business Owners: Beyond our strong support of women-owned businesses, we're seeing higher representation of minority-owned businesses compared to traditional lenders
• Gig Economy Workers: Flexible lending solutions that understand and adapt to irregular income patterns
• Young Adults: Alternative credit products that help build positive financial habits from the start
• Immigrant Communities: Assessment models that don't require extensive credit history in the U.S.

The ripple effects of financial inclusion extend far beyond individual borrowers:

• Community Investment: Increased access to capital has enabled business expansion in historically underserved areas
• Economic Mobility: Responsible credit options have helped individuals avoid predatory lenders and build financial stability

While we're proud of the impact we've had, we recognize there's still more work to do – and we remain committed. Our goals for the future include:

• Expanding our reach to more underserved communities
• Continuing to innovate in credit assessment methodologies
• Working with policymakers to modernize credit reporting systems
• Developing new products that address specific community needs

By combining technology, data, and a commitment to responsible lending, we're showing that financial inclusion and strong business performance can go hand in hand. The success of our borrowers is the strongest testament to what's possible. We’re not just building better and more inclusive products, we’re laying the foundation for a credit system that works better for everyone.