Seriously though, what even is cash anymore?
It’s likely no secret the pandemic has led to a pretty drastic decline in the usage of cash, mostly sparked by fears that the paper money could transmit COVID-19. As if cash has always been so clean…?
Regardless, the preference towards using “digital dollars” is a trend Jodie Kelley, CEO of Electronic Transactions Association doesn’t see going away anytime soon:
“Over the past six to eight months, we’ve seen the use of cash decline even further, and that’s a trend I think that we’re going to see continue. “When the pandemic hit, people really started paying attention to how literally they were spending money and people found that they didn’t want to touch cash and exchange cash.”
Much like the pandemic did for e-commerce, the surge in demand for contactless payments has given major fintech companies like PayPal (PYPL) an accelerated boost to their upward trajectory, with PayPal CEO, Dan Schulman, seeing digital payments shifting from “being a nice-to-have capability to a must-have essential service.”
And for a few years now, alongside PayPal at the forefront of the fintech movement has been Square (SQ), which continues to lead innovation and be well-positioned to capitalize on the fintech boom with help from its latest product.
Originally introduced in 2018, Square’s Boosts instant cashback program was created to help increase the adoption of its Cash Card by giving users instant rewards for making certain qualified purchases with the card. But in 2020, the company started experimenting with using Boosts to increase the adoption of other services in its Cash App — and it worked brilliantly.
Instead of receiving cash back on certain purchases, the Boosts program offered rewards in the form of Bitcoin, offering users as much as 10% back in the cryptocurrency on any single purchase they made, at one point. Square also offered a one-time boost for users who set up a direct deposit in Cash App.
It appears square is merely scratching the surface of how it can utilize the Boots program to entice new users. And with an average customer acquisition cost of less than $5 per user, Square looks quite primed to draw even more adoption of its Cash App for everyday use.