Square Says Pandemic Has Accelerated Digital Economy as More Go Cashless
The COVID-19 pandemic has accelerated the trend toward cashless transactions and the digit economy, according to a new survey by mobile payment company Square (NYSE: SQ).
Before the pandemic, in February 2020, 5.4% of Square sellers in the US were cashless, which Square defines as any business accepting more than 95% of their sales by in-person credit or debit card payments, online payments, or contactless payments. By April, that number soared to 23.2% and by August, when many stay-at-home restrictions were lifted, it settled at 13.4%. Still, the number has more than doubled.
Regarding payments transacted by Square sellers, the share of cash transactions dropped from 37% in February to 33% in April at the height of the shutdowns. That 33% was holding steady by the end of August. In August 2019, the share of cash transactions was 40%, so there has been a 7 percentage point drop. Square officials said that sizable one-year drop was expected to take three years to achieve.
Source Fool.com
