Here's one stock that could benefit from Apple's push for a cashless society

Key Points
  • Contactless payments like Apple Pay are surging during the pandemic because of fears that handling cash or cards could transmit the Covid-19 coronavirus.
  • Apple's wallet is a huge beneficiary of this trend as CEO Tim Cook says it's "taken on a different level of adoption."
  • Analysts believe that Apple's payments business might not have a large effect on Apple's balance sheet, but the iPhone giant's financial partners, like Green Dot, stand to benefit from an increased number of accounts and transactions.
Apple CEO Tim Cook introduces Apple Card during a launch event at Apple headquarters on Monday, March 25, 2019, in Cupertino, California.
Noah Berger | AFP | Getty Images

The ongoing pandemic has not been good for cash. Because of a national coin shortage and fears that handling cash or cards could transmit the Covid-19 coronavirus, over half of Americans are now using contactless payments, according to a Mastercard survey from August.

Instead, Americans are finally using mobile wallets to pay by tapping their phones, which benefits companies like Apple that have been building sophisticated payment ecosystems into their phones that include contactless payments.

One company that could benefit from the trend towards digital payments is Green Dot, a bank that has quietly powered the backend of financial services like Apple Cash and the rewards part of the Apple Card credit card.