Square is letting workers access some of their earned wages ahead of schedule, which could add fuel to the company’s recently booming banking business.
San Francisco-based Square launched “On-Demand Pay,” which lets those using Square for payroll give employees up to $200 of a paycheck ahead of the normal biweekly schedule. Those funds can be funneled directly into Square’s popular mobile account, the Cash App.
Square, run by Twitter CEO Jack Dorsey, also announced an “instant payments” feature, which lets businesses fund payroll immediately using money in their Square balance, instead of waiting to pay through external bank accounts.
“We’re solving for cash flow,” Hollis told CNBC in a phone interview. “If you work at a restaurant, cash tips used to be one of the biggest portions of your wages, and that has really dropped off.”
Interested in learning more about trends in consumer spending?
TSG conducted a survey of 483 consumers in the U.S., with the goal of understanding the impact COVID-19 has had on the way the U.S. consumer pays for goods and services. The survey was conducted on April 20th, 2020.
Click here to download the infographic based on payment method insights.