Square will charge you when you buy crypto on Cash App
Square will now charge you a fee every time you buy or sell BTC on its Cash App. The company has been supporting crypto purchases for some time now, with its crypto revenue increasing steadily throughout the year. Regardless, Square announced that it would shift from including the transaction fees on the spread and charge standalone fees.
Led by the pro-crypto Jack Dorsey, Square has been a shining light for crypto, offering crypto purchasing at a time when many Wall Street firms were staying away from the market. Its decision was rewarded by the crypto community, with the number of users purchasing crypto on the company’s Cash App increasing with every single quarter.
In Q1 of this year, Square processed $65 million in crypto sales, a huge improvement on the previous quarter. In the second quarter, it nearly doubled this, registering $125 million in crypto sales. However, the company’s profits from its crypto venture were still low.
However, despite the increase in revenue, Square believes it should make a bit more from the sales and has adopted a different price model. In an update on its site, the company indicated that “Cash App may charge fees when you buy or sell bitcoin. These fees will be listed on the trade confirmation before you complete a transaction.”
The fee will stand at $1.76 for on purchases, CoinDesk revealed, citing sources at the company. A Square spokesperson further confirmed the changes. Previously, the fee was included in the spread, but according to the spokesperson, the company decided on this model for the sake of user transparency.
The notice by the company also indicated there will be two types of fees. “Cash App charges two kinds of fees for bitcoin transactions: a service fee for each transaction and, depending on market activity, an additional fee determined by price volatility across U.S. exchanges.”
On the same day, Square announced its Q3 earnings, beating many analysts’ expectations. The company processed $148 million worth of crypto trades, an 18% increase from the previous quarter and an impressive 252% increase from a similar period in 2018. It also revealed that first time BTC buyers had nearly doubled. Overall, the company generated $1.27 billion in revenue, with transaction-based revenue contributing the biggest percentage.
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