Square Report Reveals How Much the Pandemic Has Accelerated the Digital Economy

Square announces Terminal API at Unboxed 2020 Conference

Square Data Estimates Decline in U.S. Cash Usage This Year Alone Would Have Taken Three Years Without the Pandemic

Square, Inc. (SQ) released a new report that highlights how the onset of COVID-19 has affected global commerce and payments behavior. This is the third installment of Square’s Making Change series, which examines whether or not we’re headed towards a cashless society.

Read More: BillingPlatform Increases Standing in MGI 360 Ratings Report for Agile Monetization Solutions

“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. This signals that COVID-19 has already had what will likely be a lasting impact on consumer behavior.”

In February 2020, just 5.4% of Square sellers across the US were cashless*. By April 2020, amidst the height of shelter-in-place mandates, that number jumped up to 23.2%. By August 2020, as the world slowly began to reopen, the number of Square sellers with a cashless business model was showing signs of stabilizing at 13.4%. That said, there has still been a remarkable increase in cashless adoption rates compared to pre-pandemic.

Square Economist, Felipe Chacon explains, “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. This signals that COVID-19 has already had what will likely be a lasting impact on consumer behavior.”

Read More: German Peer-to-peer Lender auxmoney Raises €150 Million

Among payments transacted at US Square sellers since February 2020, the share of cash transactions decreased from 37% in February to 33% in April, and held stable at 33% through the end of August. By comparison, during that same time period in 2019, the share of cash transactions increased slightly: from 39.9% in February to 40.0% in August.

When comparing the share of cash transactions via Square in 2019 to 2020, the year-over-year change shows a 7.3 percentage point drop from 40.6% in 2019 to 33.3% as of August 1, 2020. If we use 2019 as a baseline indicator, we estimate this one-year shift would have taken more than three years without the pandemic.

Read More: GlobalFintechSeries Interview with Gerard Griffin, CEO at AnyDay

Login

Welcome! Login in to your account

Remember me Lost your password?

Lost Password