Payments Firm Square Planning To Add More Bitcoin Services

Announcements, News | March 6, 2018 By:

Payments platform Square is planning to roll out consumer-to-merchant payments via bitcoin.

During a private media call with MarketWatch, Jack Dorsey, CEO of Square and Twitter, said: “Bitcoin, for us, is not stopping at buying and selling. We do believe that this is a transformational technology for our industry, and we want to learn as quickly as possible. Bitcoin offers an opportunity to get more people access to the financial system.”

In November 2017, the company integrated bitcoin on its Square’s Cash app to allow users to buy, sell and hold bitcoins, but not to make payments with it. The results of that move are clearly reflected in Square’s quarterly report. The net revenue of the company significantly increased when compared to the previous quarterly report earlier that same year.

The quarterly report revealed the number of customers on its platform for the first time, showing that the Cash platform has topped 7 million users in December, just after the integration of bitcoin. It also revealed that the customers using Square Cash debit card spent more than $90 million. Square shares are up nearly 200 percent over the past year, and almost 96 percent over the past six months.

Regarding Square’s move to fully support bitcoin, Credit Suisse analyst Paul Condra stated, “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.”

Instinet’s Dan Dolev, a Square bull, said the excitement around bitcoin could create new opportunities for Square down the road.

“I think it’s kind of ramifications of commentary that was made last week on them testing bitcoin with merchants,” Dolev said. “They are now accepting bitcoin everywhere on the cash apps. It’s not necessarily that bitcoin goes up, it’s more just associated with Square being a first mover…. The question is, will they allow merchants to accept it? I think it’s just pure speculation. But if that’s the next step, then it kind of goes viral.”