Square pilots cash rounding to help sellers with penny’s demise

The US Treasury recently confirmed that it has minted its last penny. However, 19% of Square transactions in the country are made with cash. In a given week, at least 16.7 million pennies cross the counters of local businesses using Square.

To help sellers deal with this, the firm is now piloting technology that it already uses in Australia and Canada.

Cash transactions will be automatically rounded to the nearest 5¢, with back-end transaction reporting assisting sellers with reporting the total dollar amount of tax collected.

Willem Ave, global head, product, Square, says: “Removing the penny may seem small, but the impact on day-to-day operations is very real. Large chains have teams who can model scenarios and adjust quickly.

“There are millions of neighborhood businesses who also have a critical need to maintain smooth operations. They deserve the same level of support, and our job is to make sure they can keep serving their customers without missing a beat.”