As cryptocurrencies are slowly making their way into the mainstream financial system, several payments gateways are experimenting by integrating digital currency payments into their system. One of the key reasons is that the blockchain technology allows for instant payment transfer at reduced costs and with better security over many of the existing systems.
Popular digital-payment company Square on Wednesday announced that it is facilitating the users of its Cash App to buy and sell Bitcoin on its platform. Square CEO Jack Dorsey announced this on his twitter handle following which shares of the company jumped by 3 percent on the day-end.
Instant buying (and selling, if you don’t want to hodl) of Bitcoin is now available to most Cash App customers. We support Bitcoin because we see it as a long-term path towards greater financial access for all. This is a small step.
We also made this! https://t.co/z3u0liDNk4
— jack (@jack) January 31, 2018
Although Square’s Cash App now has the facility to trade in bitcoin, it is not available to users from a few select cities like Georgia, New York state, Wyoming and Hawaii, for reasons unknown. Also, a limit has been set where users will be able to purchase Bitcoin worth $10,000 in a weeks time or even deposit it from other addresses. This good thing is that the app is not currently adding any fees, however, the selling price will be the average price received from different exchanges and will include a spread.
In a statement to TechCrunch, a spokesperson from Square said: “Cash App empowers people with access to the financial system, and our customers have shown interest in a simple, approachable way to buy and sell Bitcoin. Through our pilot, we’ve learned a great deal about how we can make this experience faster and easier and we’re excited to expand its availability.”
Paul Condra, a Credit Suisse analyst, in an email, said: “We believe bitcoin and other crypto sales represent a potential mid/long term growth opportunity for Square and we are positive on the strategy. This strategy could also drive greater adoption of Square Cash and we note SQ is well positioned to potentially facilitate crypto-payment purchases at Square merchants at some point in the future.”
The company has also created an interactive website/storybook explaining Bitcoin in an easy manner. Also, note that Square will not be the first app to offer commission less trading. Popular stock-trading app Robinhood announced last week that it will be launching its crypto trading app to its users to buy and sell digital currencies at absolutely no fees. The company is said to have more than 1M people on its wait list which shows that the demand is still strong for crypto trading even amidst the recent market correction.
With more players entering the crypto businesses for making it easy for users to trade in cryptos and at a reduced cost, the competition is sure to get intense in the coming days and exchanges which are currently sitting on huge cash moolah will have a run-for-their-money in the coming times.
These announcements are coming at a time when the crypto markets are seen correcting heavily in past one weeks time. Also, Bitcoin has now slipped below $9500 mark and is currently trading at $9305.60, according to CoinMarketCap. The overall cryptocurrency market valuation has also slipped below $500 billion and now at $467 billion.