The Surge of Sales and Cash Application Usage Amid the Pandemic

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What is the current state of Square Inc. sales? 

According to a report, they more than doubled over the quarter previous to November 2020. 

This not only underscored the increase in demand for trades involving Bitcoin, but also purchases of stock and other financial transitions. The worldwide coronavirus (COVID-19) pandemic played a role in this, as customers made transactions from the comforts of their own homes. 

Bloomberg found that the stock for the San Francisco-based company rose 6% in terms of after-hours trading. A survey by Bloomberg also noted that this meant revenue skyrocketed 140%, equalling $3.03 billion USD. Such an amount surpassed the avenge estimate of $2.05 billion USD. 

In terms of other factors that played a role in Square Inc.’s growth, the company attributed that to its peer-to-peer (P2P) payments application. Cash App, the payment service and application in question, let users make transactions with others through mobile phones. 

During the aforementioned third quarter, the application generated revenue of $2.07 billion USD. A significant portion of that revenue was also due to Bitcoin transactions.

As for gross payment volume, it went up to 12% year-over-year (YOY). This was notable because it was down 15% in the second quarter of 2020.     

As the worldwide pandemic continues to affect different markets, it is important to continue to monitor payment trends. This would not only help with ensuring a future for businesses, but also improve the customer experience based on their expectations in terms of payment options.

Merchants should aim for seamless transaction experiences in order to achieve higher customer retention and make the most of online sales. Additionally, business owners should consider their options when it comes to in-store payment solutions. The increasing popularity of contactless payment options, for example, can both help mitigate the spread of COVID-19 and put customers more at ease. Merchant Broker is here to be that solution. To receive more information, contact an expert at either info[at]merchantbroker.com or 1-888-668-0733.

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