Square Cash App Bitcoin Transactions Grow 244% Year Over Year, Plenty Of Room For Further Growth

November 8, 2019 / by Crypto.IQ

The Square Cash App is becoming an increasingly popular way to buy Bitcoin (BTC) since its launch in November 2017. In Q3 2019 Square processed $148 million of Bitcoin (BTC) sales via the Cash App, which is up 244% year over year. Further, the number of users buying Bitcoin (BTC) for the first time nearly doubled. 

It makes sense that Square Cash App is seeing growth in its Bitcoin (BTC) volumes since it provides an easy way for United States residents to buy Bitcoin (BTC) directly with their debit card. Further, the Cash App offers its own native Visa debit card, and this card has become popular since even people that usually cannot open a bank account are eligible for the Square Visa debit card. 

This Square Visa debit card can effectively be used as a cryptocurrency debit card since users can deposit Bitcoin (BTC) to their Cash App and then instantly sell it, and then use the funds at any store via the card. The crypto space has long desired a widely available cryptocurrency debit card, and the Square Cash App is perhaps the first one. 

Although Bitcoin (BTC) volumes are rising on the Square Cash App, they still pale in comparison to major cryptocurrency exchanges. For example, Coinbase Pro has roughly $15 billion of volume per quarter, versus only approximately $0.15 billion of Bitcoin (BTC) volume on the Square Cash App.

The silver lining is this means the Square Cash App has plenty of room to grow in the Bitcoin (BTC) sector. 

Finally, the Square Cash App has relatively low fees and only profited $2 million on the $148 million of Bitcoin (BTC) volume. This fee used to be obtained via a spread between buy and sell prices, but now Square has gotten rid of this spread and is charging a 1.76% flat fee in order to increase transparency. This fee is similar to the fee Coinbase charges.