Block, the company powering Square, Cash App, and other services, unveiled a new initiative today aimed at merchants using Square’s solutions: the ability to convert a portion of their daily sales into bitcoin.
Rolling out in the U.S. starting today, the feature enables Square sellers to transfer between 1-10% of their daily sales to their personal Cash App account. At the end of the day, this amount will automatically convert into bitcoin. Merchants will receive confirmation of the conversion once the transaction is finalized.
Initially, the bitcoin conversion feature will be accessible to sole proprietors or single-member LLCs, with availability expanding to more sellers in the coming months. Block will levy a 1% fee on each conversion initiated by the seller. Merchants retain the flexibility to send bitcoin to other wallets or sell them at their convenience directly from their Cash App account.
Block expressed its belief in bitcoin as a tool for economic empowerment, providing a pathway for individuals, including business owners, to engage with a global monetary system. The company’s decision to introduce this feature stems from direct feedback from Square sellers, many of whom have demonstrated interest in bitcoin for various use cases, such as long-term savings and diversifying their business holdings.
Regarding conversion patterns and average returns for sellers, Block indicated that it had conducted initial tests of the bitcoin conversion feature with a small group of merchants and did not yet have conclusive data.
Block has consistently aimed to streamline the process of purchasing bitcoin across its platforms. For example, the company integrated its self-custodial wallet, Bitkey, with Cash App and Coinbase, facilitating seamless bitcoin trading for holders.
