Cashless payments have grown increasingly popular during the coronavirus pandemic. Business owners and consumers once again realize the advantages of digital payment and this shift will benefit Square in the long term.
Square said that the share of cashless business has more than doubled since pre-pandemic 2020 in the U.S., Australia, Canada, and the U.K. and nearly doubled in Japan. In the U.S., only 6.3% of Square sellers were cashless businesses in February 2020, which jumped to 14% by February 2021. Despite this doesn't mean people will stop using cash, but the pandemic has highlighted the appeal of contactless payments.
In addition, the company launched Cash App in 2018, it can help users to send money, spend money, save money, and buy cryptocurrency in the easiest way. For the full year of 2020, Cash App generated $1.23 billion in gross profit, up 168% year over year. The Cash App also enables users to buy and sell Bitcoin. In 2020, there were more than three million customers buying or selling Bitcoin on the Cash App. The company is still strengthening its investment on the Cash App and I expected that its revenue and user volume will continue to grow in the next few quarters.
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