How Square and Cash App Outages are Disrupting Small Businesses: What You Need to Know Now

Closing Shop: How Small Businesses Were Forced to Shut Down During Outages

Imagine this scenario: it’s your typical morning at the neighborhood quaint little coffee shop tucked in the corner of the city. Customers are trickling in and out, some grabbing their morning brew to kickstart their day, others settling in for a little remote work. Suddenly, your digital payment processing systems, Square and Cash App, go down. The outage cripples your ability to process transactions, leaving you unable to conduct business. This unfortunate scenario is not as far-fetched as it may seem, but a real challenge many small businesses faced yesterday when the Square and Cash payment app went down. Popular taco shop Guisado’s in Downtown LA posted to Instagram that the outage “was a huge blow to our business and the many businesses who operate their entire day around a platform that failed us all.” Such a statement highlights the vulnerability of small businesses when they rely on digital platforms that will inevitably fail.

This incident serves as a stark reminder of the consequences of our increasing reliance on digital infrastructure. For many businesses like Guisado’s, these outages are not just inconveniences, they can mean the difference between opening doors for the day or having to turn customers away. Square and Cash App have millions of daily active users, and small businesses account for a significant portion of Square’s customer base – so they’re the ones hit hardest when payment apps fail.  The Square and Cash App outages have caused financial losses and a lot of stress for many small business owners

When Digital Infrastructure Fails, Small Businesses Face the Fallout

The Critical Role of Digital Infrastructure

Digital infrastructure, particularly payment processing apps like Square and Cash App, has become a lifeline for small businesses. They allow businesses to accept payments quickly and efficiently, track sales, and even manage inventory. In essence, they have transformed the way small businesses operate, enabling them to compete more effectively in the digital age.  But what happens when these critical systems go offline? 

The Impact of Outages

When outages hit apps like Square and Cash App, they do more than just disrupt the flow of a business day. They can have serious financial implications for small businesses, especially those that rely heavily on card payments. In the worst-case scenarios, businesses may have to completely shut down for the day, as they’re unable to process transactions. And there were other impacts: the outages resulted in negative reviews from customers.

Navigating the Storm: Small Business Survival Strategies During App Outages

When the digital world fails –  (and they will fail),  it can feel like as disaster.  And for many businesses — particularly those that run on thin profit margins, like restaurants — it is. But don’t worry, there are effective survival strategies for small businesses to navigate these trying times. Let’s explore some ways you can keep your business afloat when app outages occur.

Plan B for Payment Processing

Don’t put all your eggs in one basket. Relying solely on an app like Square or Cash App for transactions can leave your business vulnerable. Instead, you should always have a backup plan. This could be another digital payment platform or even a traditional credit card machine. That way, if one system crashes, you’re not left in the lurch.

Rely on Cash Transactions

When all else fails, cash is king. Encourage your customers to keep some cash handy for emergencies. Offering discounts for cash transactions can be an effective way to incentivize this. While it’s not an ideal solution for every business, it can serve as a useful stopgap during a digital outage.

Communicate with Customers

Transparency is key. Inform your customers about the situation and the steps you’re taking to resolve it. Use other digital platforms, like email and social media, to keep them in the loop. Customers appreciate honesty and will likely be understanding about the situation.

Stay Informed

Keep abreast of the situation. Monitor the news, check with the app’s customer service, and stay updated on when the service might be restored. The sooner you can get back to normal, the better.

Invest in Offline Systems

While the digital realm has brought unprecedented convenience, it’s also made many businesses overly dependent on it. Consider investing in offline systems that can keep your business running, even when the internet is down. This could include things like using paper forms for orders or maintaining a physical ledger for accounting.

Remember, while technology has the power to facilitate business processes, it also comes with its share of risks. Being prepared for these hiccups can mean the difference between keeping your doors open or having to close up shop during an outage.

What Can You Do?

And for us consumers: don’t forget — our neighborhood small businesses struggle after an outage… So go get a taco at Guisados, or a coffee at your local coffee place to help them get back on track after a digital outage setback.

But bring a little spare cash — just in case.