Square is one of the most popular payment platforms on the market. Now, Square is reportedly testing bitcoin on its platform.
The price of bitcoin jumped 10% on the news – despite the fact that bitcoin’s scaling issues and transaction problems remain unsolved.
Jack Dorsey’s company Square is reportedly testing support for bitcoin through its payment app Cash. Earlier today, analysts from Credit Suisse described how adding bitcoin to the platform could improve the price of the stock. Accordingly, Square’s share prices spiked 5% before settling around 2% higher.
The analysts added that Square wasn’t the only major payment platform testing cryptocurrencies. “We believe PayPal (PYPL) is also well positioned to provide such services,” explained the analysts.
Nevertheless, it may come down to an early mover advantage. Whichever payment processing company supports bitcoin first will have an early advantage over the competition:
“We believe it could place SQ in an early-mover position as a mainstream fintech company providing crypto-currency services,” explained the Credit Suisse research analysts.
Some Square Cash Users Already Have Bitcoin Payment Support
This latest news from Square is more than just a rumor. Some users already have the feature on their phones.
The company has also publicly confirmed the news, issuing a statement explaining that they’re already testing bitcoin payments:
“We’re exploring how Square can make this experience faster and easier,” Square explained in a statement to CNBC, “and have rolled out this feature to a small number of Cash app customers. We believe cryptocurrency can greatly impact the ability of individuals to participate in the global financial system and we’re excited to learn more here.”
Yes, some Square users already have bitcoin functionality. However, Square was careful to mention that the test does not allow individuals or businesses to send or accept bitcoin. Apparently, users can only view bitcoin on their Cash app, but can’t actually make transactions using the popular cryptocurrency.
Nevertheless, tweets appeared online showing where some users showed off their bitcoin support in Square Cash. “since when can you buy bitcoin through @SquareCash?!” wrote one user, while another user tweeted “OMG! Just noticed I can now invest in Bitcoin using my Cash app! I seriously think this is my most useful app….ever.”
Square point of sale terminals can be found worldwide. The company is known for catering its mobile PoS solutions to small and medium-sized businesses, making it easy for these businesses to accept card payments.
In a statement, a Square spokesperson said that, “We’re always listening to our customers and we’ve found that they are interested in using the Cash App to buy Bitcoin.”
By rolling out the feature to a small number of users, Square can test support among the community while tweaking its bitcoin payment processing back-end. Ultimately, Square isn’t the only company that makes it easy to accept bitcoin payments – but it’s one of the biggest and best-established names to be associated with bitcoin thus far.