Block (formerly known as Square), the fintech company led by Jack Dorsey, is integrating its merchant services system, Square, with its peer-to-peer payments app, Cash App. This integration will allow retail stores to automatically convert a portion of their daily sales into Bitcoin (BTC).
The new tool, Bitcoin Conversions, will enable eligible Square users to create a dedicated Cash App account. This account will receive between 1% to 10% of the store’s revenues, which will then be converted into BTC on their behalf.
Advertisement
The converted Bitcoin can be held, sold, or transferred according to the user’s preferences. Initially, the service will be available to sole proprietors or single-member LLCs, with plans for a broader rollout to all Square customers in the coming months.
According to Block’s market research, conducted by surveying Square sellers, there is significant demand for a product like Bitcoin Conversions. As stated in the company’s press release, many merchants are keen on Bitcoin, seeing it as beneficial for long-term savings and diversifying their business holdings.
Cash App, a popular onboarding platform for new users in the Bitcoin ecosystem, is emerging as Block’s focal point for its Bitcoin-oriented efforts.
Cost-Effective Bitcoin Conversion Fees
Integrating Bitcoin Conversions by Block, linking Square and Cash App, presents a potentially lucrative financial opportunity for the company. As of last year’s closing, Block’s digital asset holdings included approximately 8,038 Bitcoins, which, based on current pricing, had a market value of roughly $531 million.
The block will earn revenue based on the number of merchants who sign up and the volume of capital converted into Bitcoin daily. Initially, the service will levy a flat 1% conversion fee for retail Bitcoin purchases, lower than Cash App’s standard 2.25% fee. This fee represents an additional revenue stream for Block in addition to existing processing fees.
Once merchants complete the Bitcoin conversion, they can decide about their new digital possessions. Options include moving Bitcoin to external wallets or selling it straight from their Cash App accounts.
Bitcoin functions as an instrument for economic empowerment, granting users entry into a worldwide monetary network.
The growing number of merchants using the services have shown substantial enthusiasm for Bitcoin as an essential component of their financial portfolios. Bitcoin has the potential to secure long-term value and hedge against market volatility through diversification.
Block Simplifies Merchant Bitcoin Conversions
Block’s recent pilot program with a limited number of merchants for the Bitcoin conversion feature has not yet disclosed statistics regarding their usage patterns and typical gains from the conversions. It strives to eliminate complexities in the Bitcoin acquisition process for merchants utilizing its services, ensuring a seamless experience throughout its platforms.
It has integrated its Cash App and Coinbase platforms with Bitkey to simplify converting sales revenue into Bitcoin, enabling merchants to effortlessly execute Bitcoin conversions and manage their new digital assets within their existing accounts.
Block underscores its commitment to charging a competitive fee of 1% on every Bitcoin conversion made by merchants using its new service. With Square’s new service, merchants can easily convert a significant portion of their day-to-day sales, equivalent to 1% and 10%, into the cryptocurrency Bitcoin.
Upon completing a Bitcoin conversion, merchants can look forward to effortlessly having the generated bitcoins moved into their personal Cash App wallets. Merchants will be notified with a confirmation message.
It aims to roll out the Bitcoin conversion service to a wide range of clients, specifically sole proprietors and single-member LLCs, within the upcoming months.
The company’s belief in the potential of Bitcoin as an economic empowerment tool for individuals and businesses drives its continued investment in Bitcoin-related products and services.
Advertisement
