Some Square Users Can Now Convert Their Dollars to Bitcoin Via Cash App

Using Bitcoin Conversions, eligible Square users will receive a specialized Cash App account. This account automatically collects 1% to 10% of their store’s earnings. The tool then converts these funds into Bitcoin for them. Users can choose to keep, sell, or transfer the Bitcoin whenever they want. Initially, only sole proprietors and single member LLCs are able to use this service. A broader rollout to all Square customers is planned in the near future.

According to reports, Block conducted market investigations by questioning Square vendors, revealing a potential customer base for Bitcoin Conversions. Several merchants expressed interest in bitcoin, seeing it as a valuable tool for long-term savings and expanding their business assets.

Sellers have expressed to us the need for a convenient method to obtain bitcoin and expand their investments. To address this request, we collaborated with Block’s ecosystem to create a solution tailored for sellers. Bitcoin Conversions simplifies the process while allowing sellers to retain control over managing their bitcoin holdings. (Michael Rihani, Bitcoin Product Lead at Cash App, shared this information in an email to CoinDesk)

The new financial service for Block could bring significant revenue, depending on the number of merchants joining and the daily conversion volume. Initially, this service will levy a 1% fee, which is less than Cash App’s 2.25% charge for most bitcoin retail transactions but an additional source of income for Block alongside existing processing fees.

CashApp, known for being a favored method to introduce people to the world of Bitcoin, seems to be taking the lead in Block’s Bitcoin-centric initiatives. Recently, they started delivering pre-orders of their unique, non-custodial Bitkey wallet. This wallet, developed by CashApp, is linked to it, allowing for effortless buying and sending of Bitcoin directly from CashApp.

Last year, CashApp, a business run by Block, brought in a profit of $1.18 billion, marking a 25% increase from the previous year. This figure includes revenues from non-bitcoin transactions. In comparison, Square recorded a gross profit of $828 million during the same period. As of December’s end, Block owned around 8,038 Bitcoins, currently valued at approximately $531 million.

For further reference, check out: Jack Dorsey’s Block Inc. Initiates Dismissals in Accordance with Earlier Announced Decision to Reduce Workforce by 10%.