Since 2009, the popularity of cryptocurrencies has grown exponentially. Blockchain technology has enhanced security and transparency of all transactions executed on the platform. Various Fintech and e-commerce firms have also increased their profit margins by accepting many cryptos especially bitcoin. Cash App, the Square’s mobile payments application, is among the beneficiaries.
The Bitcoin Cash App transactions posted impressive growth in the Q3 earnings despite the prevailing bearish cryptocurrency market. In the company’s Q3 shareholder letter approximately $43 million in Bitcoin revenues was reported. It translated into just above $560 thousand of Square’s quarterly net profit.
Square is a mobile payments and merchant services company that has its headquarters in San Francisco. The company was launched in 2009. Over the years, they have created a successful and portable point of sale systems that include Square Register and Square Reader. The company has grown in popularity over the years ranking as a preferable payment services provider for small and medium-sized businesses throughout the United States.
Square has made progressively strategic moves to become one of the major payment processors pioneers to accept Bitcoin transactions. In March of 2017, square made its first move into crypto payments. Its Square Market tool was used as the pilot project in support of Bitcoin payments by the company.
After the first attempt became a huge success, the company continued to aggressively push for Bitcoin support by introducing it in its popular Cash App previously known as Square Cash. The application lets businesses and individuals to receive and send money online via an online intermediary (alias).
In November of 2017, Square shifted to beta test Bitcoin payments. By the end of January 2018, most mobile users could access the Bitcoin Cash App transactions system. This new development puts Square at par with a few existing crypto payments processing companies. BitPay has supported crypto payments since May 2011 while Coinbase Commerce joined this space in February 2018.
PayPal’s Venmo, Square’s notable competitor, has not yet offered any cryptocurrency support. Due to Square’s entrance into the cryptos space, the company experienced a surge in the Cash App’s downloads. The cumulative downloads exceeded those of Venmo mobile money service currently standing at just above 34 million against Venmo’s 33 million. This data was aggregated from Apple App and Google Play Stores.
Square is also a pioneer among its mainstream payment processors peers to solve the disadvantages of cryptocurrency payments. Long confirmation times, price volatility, and complexity of use still make cryptocurrencies an undesirable option for retail payments. Nevertheless, Square is striving relentlessly to solve all these issues.
A Leader in Crypto Payment Processing
Square is progressively setting up strategic crypto payment solutions. Leveraging these solutions on its massive user base and extensive popularity among the small businesses, the company is poised to become an undisputed leader in the crypto payments market. The company posted revenues of up to $43 million arising from Bitcoin transaction as reported in the Q3 shareholder letter.
The revenue recorded was up 16% compared to the Q2 earnings report. The $560 thousand net total represented a 33% rise compared to the previous quarter. These figures are accountable for the incredible transaction volume growth notwithstanding the bear market.
Since the launch of Cash App’s Bitcoin support, the overall cryptocurrency market capitalization has extensively declined by a whopping 66%. Nevertheless, the Bitcoin Cash App transactions volume continues to grow considerably. This quarterly growth may indicate a growing adoption of cryptocurrency transactions among Cash App users.
With the many solutions that Square is formulating to address the issues affecting cryptocurrency transactions, mass adoption will follow.
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