Square, a US-based financial technology conglomerate, has announced the integration of its merchant services system with its peer-to-peer payments app, Cash App. The new feature, called Bitcoin Conversions, allows eligible users to automatically convert a portion of their daily sales into Bitcoin (BTC).
Initially targeting sole proprietors or single-member LLCs, Bitcoin Conversions aims to provide Square users with an easy and streamlined way to invest in Bitcoin. Participating users can choose to allocate between 1% and 10% of their daily revenues to be converted into BTC and deposited into their Cash App account. From there, they have the flexibility to hold, sell, or transfer the acquired Bitcoin as desired.
Market research conducted by Square revealed a demand among its sellers for a product that allows for long-term savings and diversification of business holdings through Bitcoin. The company aims to cater to this demand while providing users with control over their Bitcoin management.
Bitcoin Conversions carries a flat 1% conversion fee, which is lower than Cash App’s standard 2.25% fee for retail purchases of Bitcoin. This fee structure presents a potential additional revenue stream for Square, depending on merchant adoption and conversion volumes.
Representatives from Cash App emphasized that Bitcoin Conversions is designed to simplify the process for sellers while empowering them to take control of their Bitcoin investments.
Cash App has been instrumental in onboarding users into the Bitcoin ecosystem, and this latest initiative underscores Square’s commitment to expanding its Bitcoin-focused offerings. In the previous year, Block reported a total profit of USD 1.18 billion from its Cash App business, representing a 25% year-over-year increase. Additionally, Square held approximately 8,038 BTC, valued at USD 531 million based on current prices, as of December.