@phytat is right in a sense that we focus on Google Docs and the Google Apps eco-system. Our goal is to provide the best possible experience here.
That said, we know that this eco-system is still a tiny a niche when it comes to academic writing. Fortunately, we don’t have many people leaving Paperpile but when they do the number one reason is “My colleagues don’t want to use Google Docs and I’m stuck with word”
That’s why we try to add Word support as discussed in this thread: Support for Word Online would be a game changer
At the moment it is not possible to directly cite references with Word in Paperpile. You can however export a Google Doc to Word “File Download as > Word”.
If there are any news we will definitely announce it. At the moment it depends on technical issues and how Microsoft moves forward with their new plugin system.