Square Pay Statistics 2025: Driving Growth in Online and Contactless Payments

Square, a leading player in the digital payments landscape, continues to shape the future of commerce with its innovative solutions. From its humble beginnings in 2009 as a mobile card reader to becoming a pivotal force in the cashless payment revolution, Square has demonstrated unparalleled growth and adaptability. This article delves into the latest statistics and trends surrounding Square Pay in 2025, offering insights into how this tech giant is influencing the global financial ecosystem.

Editor’s Choice: Key Milestones

Square’s Gross Payment Volume (GPV) reached a record $180 billion in 2023, reflecting an 18% year-over-year increase from 2022.
The company’s market capitalization stood at $80 billion in early 2024, solidifying its position among top financial technology firms globally.
Square’s Cash App exceeded 50 million monthly active users in 2023, showcasing its growing consumer adoption.
In 2024, Square launched Tap-to-Pay functionality for Android devices, expanding its user accessibility.
The firm reported a customer satisfaction rate of 92% for its business solutions, emphasizing its focus on client experience.
Square introduced a renewable energy initiative in 2023, pledging to achieve net-zero carbon emissions by 2030.
Square Online Stores observed a 40% surge in e-commerce activity, attributed to the rise in small business digital transformations.

Square Payments Users by Business Size (2022–2024)

The majority of Square Payments users are small businesses, with 34% having only 1 employee.
Another 34% consists of businesses with 2–10 employees, confirming Square’s strong appeal to micro-businesses.
13% of users have 11–50 employees, while 8% fall into the 51–200 employees category.
Larger businesses are far less represented: only 3% each for 201–500 employees and 501–1,000 employees.
Enterprises with over 1,000 employees make up just 1% or less of the user base, including 10,000+ employee firms.

Gross Payment Volume (GPV) Trends

In 2023, Square’s GPV grew to $180 billion, marking its 10th consecutive year of double-digit growth.
Small-to-medium-sized businesses accounted for 70% of Square’s GPV, highlighting its core market focus.
Healthcare and wellness sectors using Square saw an increase of 24% in GPV, driven by service demand and streamlined payment processes.
The food and beverage industry contributed 30% to GPV, with Square POS systems becoming ubiquitous in restaurants.

Square POS in the Food and Beverage Sector

Square’s international markets accounted for 20% of GPV, with expansions in Canada, Australia, and Japan driving growth.
Peer-to-peer payments via Cash App surged by 25% in 2023, reaching $60 billion in GPV.
Contactless payment options, such as NFC-enabled cards and mobile wallets, now constitute 58% of Square’s GPV.

Revenue and Profit Statistics

Square’s revenue in 2023 reached a record-breaking $20 billion, growing by 19% year-over-year.
The subscription and services segment accounted for 30% of revenue, driven by Square Payroll and Square Capital.
Transaction-based revenue contributed $12 billion, reflecting a 15% increase compared to 2022.
Gross profit margins stood at an impressive 45%, showcasing Square’s efficient cost management strategies.
Square Pay’s hardware revenue grew by 12%, bolstered by the launch of new card readers and POS systems.
Net income for 2023 was $3 billion, recovering from previous dips caused by pandemic-related economic shifts.
Analysts forecast Square’s revenue to grow by another 15% in 2024, emphasizing its resilience in a competitive market.

With its robust growth, customer-centric innovations, and consistent financial performance, Square continues to redefine how businesses and individuals handle payments in the digital era.

Square Customer Preferences by Product and Service

Coffee leads the list with 88 customers, making it the most popular product or service among Square users.
Events services attract 81 customers, showing strong demand in the event planning and hosting sector.
Catering follows closely with 80 customers, reflecting the importance of food services in Square’s customer base.
Educational services also perform well, with 79 customers relying on Square for their operations.
Graphic Design businesses account for 75 customers, highlighting steady demand for creative and visual services.
Marketing services are used by 69 customers, indicating growing adoption of Square among promotional and branding professionals.
Photography services round out the list with 66 customers, showing consistent interest from visual content creators.

Merchant Adoption and Market Share

Square’s merchant base grew to over 3.5 million active sellers globally by the end of 2023.
50% of small businesses in the US now rely on Square for payment processing, cementing its market dominance.
Retail businesses represent 40% of Square’s total merchant portfolio, driven by its easy-to-use POS systems.
Square has captured a 20% market share in digital payment solutions, outpacing several competitors in the fintech space.
Among new merchants in 2023, 35% were first-time adopters of any digital payment system, reflecting Square’s appeal to tech newcomers.
Square’s loyalty programs contributed to a 15% increase in merchant retention rates in 2023.
In emerging markets like Southeast Asia, merchant adoption grew by 30%, attributed to targeted outreach campaigns.

Share of Cashless Businesses Globally

By 2024, 35% of global businesses are expected to operate entirely cashless, with Square playing a pivotal role in this transition.
In the United States, 60% of Square merchants report being fully cashless, driven by consumer preference for contactless transactions.
Square facilitated over $100 billion in cashless transactions in 2023, a 20% increase year-over-year.
Europe’s cashless adoption rate among Square users climbed to 45%, led by industries like hospitality and retail.
Small businesses using Square report a 70% higher likelihood of going cashless than those using traditional payment methods.
Digital wallets and QR code payments now account for 25% of Square transactions, underscoring the shift to alternative payment methods.

The Rise of Alternative Payment Methods in Square Transactions

The number of cash-free restaurants using Square rose by 18%, particularly in urban centers with younger demographics.

A Global Look at Cashless Businesses

The global market for cashless payments was valued at $80 billion in 2023, with a projected CAGR of 14% through 2030.
Square’s services are now available in over 10 countries, expanding access to cashless payment tools.
The Asia-Pacific region leads in cashless transactions, with Square facilitating $5 billion in payments in this region in 2023.
North America accounted for 50% of Square’s global payment volume, driven by high digital adoption rates.
Square’s partnerships with e-commerce platforms in Europe contributed to a 30% increase in cross-border cashless payments.
Sub-Saharan Africa’s cashless market saw a 20% increase, with Square providing solutions to small merchants in urban areas.
The global shift to cashless systems is expected to reduce operational costs by 25% for businesses adopting Square solutions.

Growth of Online and Contactless Payments Continues

Square reported a 40% increase in online payments processed through its platform in 2023.
Contactless payment methods, including tap-to-pay cards and mobile wallets, represented 58% of Square transactions last year.
Online sales through Square Online grew by 30%, driven by small businesses launching digital storefronts.
Square’s e-gift card sales rose by 25%, reflecting growing consumer interest in digital gifting options.
Mobile wallet adoption surged, with Apple Pay and Google Pay representing 30% of Square’s processed payments in the US.

Growth in Mobile Payment Solutions Among Square Users in the US

Square expanded its Buy Now, Pay Later (BNPL) offerings, leading to a 20% increase in transaction value for participating merchants.
In 2024, Square introduced AI-powered fraud detection tools, reducing fraudulent transactions by 15%.
Square’s leadership in driving cashless and online payment adoption underscores its transformative impact on global commerce.

Card Usage Accelerates Among Low Tickets

Transactions under $20 using credit and debit cards increased by 30% in 2023, driven by Square’s affordable processing fees.
Digital wallets accounted for 20% of low-ticket transactions, with younger consumers leading adoption.
Square merchants in the quick-service restaurant (QSR) sector reported a 25% rise in card-based payments for small purchases.
Microtransactions via Square saw an 18% boost, attributed to seamless mobile and contactless payment options.
Consumers paying with cards under $10 grew by 15%, highlighting shifting behaviors even for minor expenditures.
Convenience store merchants using Square noted a 20% increase in sub-$20 card transactions, emphasizing the trend in daily purchases.
In urban areas, low-ticket transactions via Square’s platform rose by 28%, outpacing traditional payment methods.

Wage Growth, Earnings, and Inflation Trends (2018–2024)

Average Hourly Earnings Growth peaked near 9% in early 2022 before gradually declining to 3.63% by 2024.
Wage Growth (YoY) followed a similar path, rising sharply to over 8% in 2022, then steadily dropping to 2.73% in 2024.
Inflation (CPI-U) spiked dramatically from below 2% in 2021 to over 9% in mid-2022, then declined to 2.57% by 2024.
In 2024, all three metrics—earnings growth, wage growth, and inflation—converged near the 2.5% to 3.6% range, signaling a stabilization phase after extreme fluctuations.

Top Categories for Square Online Stores

Food and beverage businesses represented the largest category, accounting for 35% of Square Online sales.
Retail stores, including clothing and accessories, contributed 25% of total online sales in 2023.
Health and wellness products, such as supplements, saw a 20% year-over-year increase in online purchases.
Home and lifestyle brands grew their Square Online presence, leading to a 15% sales boost in 2023.
Digital service providers, like tutoring and virtual fitness, reported a 25% increase in online transactions through Square.
Specialty food markets, including bakeries and small cafes, generated $500 million in online sales using Square.
Pet care and supplies emerged as a growing category, with a 10% growth in online transactions.
Subscription-based businesses using Square Online reported a 40% increase in recurring revenue, bolstered by simplified billing tools.
Seasonal businesses, like florists and holiday shops, noted a 30% growth during peak seasons with Square’s e-commerce solutions.
Nonprofits and charity organizations using Square Online saw a 15% rise in donation transactions, driven by mobile-friendly features.

Square Online Drives Growth Across Diverse Industries

Recent Developments

In early 2024, Square launched AI-driven analytics, empowering merchants with actionable insights on sales trends and inventory management.
Tap-to-Pay on Android, introduced in 2024, broadened Square’s accessibility to millions of small business owners.
Square partnered with major e-commerce platforms, streamlining payment integrations and enabling 20% faster transactions.
The rollout of advanced reporting tools improved financial transparency for businesses using Square Dashboard.
Square introduced localized payment options in emerging markets, catering to regional payment preferences.
Contactless tipping saw a 30% increase after Square enabled digital tip prompts at checkout.
Integration with payroll platforms simplified employee payments for Square users, improving satisfaction and efficiency.
Square’s subscription management tools saw widespread adoption, supporting over 500,000 merchants in recurring billing setups.
Investments in blockchain payment solutions signaled Square’s commitment to future-ready financial technology.
Square’s sustainability initiatives reduced its carbon footprint by 10%, aligning with its pledge for net-zero emissions by 2030.

Conclusion

Square’s impressive evolution in 2024 reflects its commitment to innovation, merchant empowerment, and sustainability. From driving low-ticket card usage to supporting diverse online stores and advancing global cashless adoption, Square has solidified its role as a transformative force in the digital payment space. By focusing on strategic partnerships, cutting-edge technology, and customer-centric tools, Square is not just adapting to the future—it is actively shaping it.

Sources

USF

Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.