Jack Dorsey may "like" Bitcoin, but it seems that Square needs a higher margin, whatever.
Square's Cash application has begun charging fees of up to 1.76% on bitcoin purchases, sources told CoinDesk.
The Cash App Support website now recognizes charges and writes:
"Cash App may charge a fee when you buy or sell bitcoin. If this is the case, the charges will appear on the transaction confirmation before you complete a transaction. "
It is not known when this language was added, but no purchase has been associated with bitcoin purchases as recently as September.
According to Internet Archive, the same page "Fees" said on March 8, 2019: "You do not pay any conversion fees, or any other fees, to buy or sell Bitcoin through the Cash Application."
A screenshot of a purchase page dated November 5 revealed a fee of $ 0.10 for a purchase of $ 10 (1%). We also saw $ 0.88 for a purchase of $ 50 (1.76%) and $ 1.75 for a purchase of $ 100 (1.75%). It seems that Square rounds up in some cases.
Square did not immediately respond to a request for comment from CoinDesk. It is unclear whether the charges were applied to all users, but CoinDesk verified the existence of these charges on four different accounts.
Nevertheless, the fees compare favorably to Coinbase for the smaller purchases of the BTC. The first start of crypto-first has variable fees depending on the size of the transaction, starting at $ 0.99 for any purchase less than $ 10. A $ 10 transaction on Coinbase incurs a fee of $ 1.49. At $ 50 to $ 200, the fee is $ 2.99. With our fixed fee of 1.49% for larger purchases, Coinbase becomes a better option starting at around $ 171.
All these costs are certainly additive: Brian Armstrong, CEO of Coinbase, announced last month that the company has generated more than $ 2 billion in transaction fee income since its launch in 2012.
Square recently announced that it would allow stock purchases in the Cash application and has confirmed to The Verge that there would be no fees for purchases of $ 50,000. actions.
Square handled bitcoin sales of $ 125 million through its Cash application in the second quarter of 2019, almost doubling the first quarter record. However, second quarter bitcoin sales generated only $ 2 million in gross profit for the company.
Square has its call for results for the third quarter later today. CoinDesk will update this piece if necessary.
Image of Jack Dorsey via Shutterstock