As consumer payment systems continue to gain ground, the introduction of Bitcoin appears almost inevitable. Square’s (NYSE: SQ) Cash App, a peer-to-peer mobile payment system, offers Bitcoin alongside more traditional payment methods. Created by Jack Dorsey, CEO of Twitter, Square rose to prominence through its credit card reading hardware. The device in question proved popular with small businesses, allowing them to begin accepting credit card payments. This opened the door to near-universal credit card acceptance – a fact that has helped diminish cash’s dominance over in-person payments.
Cash App’s BTC transaction revenue is nothing to scoff at – topping $1.8 billion in Q3 of 2021 alone. Of note, this is a decrease over the second quarter of the year, ostensibly due to the relative flatness of Bitcoin’s value and a decreased overall cryptocurrency market cap leading into the more explosive fourth quarter. This drop in revenue coincides with a similar drop seen by Robinhood’s crypto custody offerings.
Square’s Cash App
Competing directly with offerings by PayPal and Venmo, Cash App allows users to transfer funds directly between one another through a mobile application. As modern society moves towards a cashless economy, peer-to-peer payment apps increasingly replace paper money in areas that traditionally lacked credit card payment systems.
Bitcoin is a natural choice for inclusion, but Jack Dorsey explicitly stated that he does not intend to include additional cryptocurrencies. However, he does plan to create a decentralized exchange for BTC within the Square ecosystem – potentially boosting revenue even further. The inclusion of both in an app targeted towards real-world use could drastically increase the number of people engaging regularly with cryptocurrency.
Cash App frequently runs promotional campaigns featuring celebrities, usually involving a $1 million BTC giveaway. The most recent spokesperson is Green Bay Packers quarterback Aaron Rodgers. Despite his recent anti-vaccination controversy, the promotion will continue as planned and follow similar campaigns focused on Megan Three Stallion and Cardi B over the past years.
The cryptocurrency industry began attracting a higher caliber of celebrity in 2021 – moving away from the Steven Seagal’s and John McAfee’s of yesteryear. The breakout star of cryptocurrency this year is easily Matt Damon – who will be advertising for rising-star Crypto.com. While these endorsements often garner derision from those within the space, they are key to attracting a more general audience to cryptocurrency as a whole.