Square sees COVID-19 leading to a ‘significant and stabilizing’ increase in cashless transactions

Square Inc. said Tuesday that the share of transactions made in cash was 33.3% as of Aug. 1, down from 40.6% at the same time a year ago. Using 2019 as a baseline indicator, the payment processing company estimates the decline in the use of cash, as a result of the COVID-19 pandemic, would have taken three years without the pandemic. In February, before COVID-19 was declared a pandemic, 5.4% of Square sellers were cashless. That percentage increased to 23.2% by April, before declining and showing signs of stabilizing at 13.4% by August. “These new findings show a significant and stabilizing increase in cashless adoption rates compared to pre-pandemic, with business owners increasingly reliant upon contactless and online payments and consumers utilizing those alternatives,” Square Economist Felipe Chacon said. “This signals that COVID-19 has already had what will likely be a lasting impact on consumer behavior.” Square’s stock, which rose 1.8% in premarket trading, has more than doubled (up 130.8%) year to date through Monday, while the S&P 500 has gained 4.7%.Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

Read Full Story

Latest posts by Market Watch (see all)

Be the first to comment

Leave a Reply

Your email address will not be published.