MarketWatch, June 20, 2020: Venmo and Square’s Cash App were going gangbusters before the pandemic — now they’re doing even better
Peer-to-peer payment platforms were already seeing explosive growth in the U.S. before the COVID-19 crisis gave them a new surge of momentum.
Services like Square Inc.’s SQ, -1.23% Cash App and PayPal Holdings Inc.’s PYPL, -0.74% Venmo found new uses during the height of the pandemic as people looked for ways to tip service workers, donate to causes, and patronize businesses that had moved to offer digital services during lockdowns.
The services also allowed users to get their stimulus payments direct deposited through their platforms, which helped some people get their money more quickly and drove more users to try the Cash App, Venmo, and PayPal.
“I think we’re going to look back and it’s going to be a really important inflection point” for these services, KeyBanc Capital Markets analyst Josh Beck said of the COVID-19 crisis.