Fun

Square’s Cash App Now Charging Fees for Bitcoin Purchases

News Feed - 2019-11-07 03:11:04

Update (Nov. 6, 22:11 UTC): Square confirmed that Cash App is rolling out a new fee structure for bitcoin purchases. Previously, the fees were baked into the spread. The article has been updated.


Jack Dorsey may “love” bitcoin but it looks like Square needs a better margin on it regardless.


Square’s Cash App has started charging standalone fees of as much as 1.76 percent on bitcoin purchases, sources have pointed out to CoinDesk.


The Cash App’s support website now acknowledges fees, writing: “Cash App may charge a fee when you buy or sell bitcoin. If so, the fee will be listed on the trade confirmation before you complete a transaction.”


It is unclear when that language was added but there were no fees associated with bitcoin purchases as recently as September.


According to the Internet Archive, the same “Bitcoin Fees” page said on March 8, 2019: “You are not charged a conversion fee, or any other fees, to buy or sell Bitcoin through the Cash App.”


One screenshot of a purchase page dated Nov. 5 showed a $0.10 fee for a $10 purchase (1 percent). We also saw $0.88 for a $50 purchase (1.76 percent) and $1.75 for a $100 purchase (1.75 percent). It seems that Square rounds down in certain instances.


After publication of this article, a Square spokesperson confirmed that Cash App is rolling out a new fee structure for bitcoin trades. Previously, fees were included in the spread (or the markup on the market price). Now Square says it has broken fees out of the spread for the sake of user transparency.


Additionally, Cash App updated the language on its website clarifying the types of fees it would charge for each transaction (the second fee, it should be noted, is dependent on market volatility): “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.”


For smaller BTC purchases, the 1.76 percent fee compares favorably with Coinbase. America’s leading crypto exchange has variable fees based on the size of the transaction, with fees starting at $0.99 for any purchase below $10. A $10 transaction on Coinbase incurs a $1.49 fee. At $50 to $200 the fee is $2.99. With a flat 1.49 percent fee for larger purchases, Coinbase becomes a better option above roughly $171, according to our tests.


All those fees certainly add up: Coinbase CEO Brian Armstrong announced last month the company has earned more than $2 billion in transaction fee revenue since launching in 2012.


Square recently announced it would enable purchases of equities in the Cash App, and confirmed to The Verge there would be no fees for stock purchases.


Square processed $125 million in bitcoin sales through its Cash App in the second quarter of 2019, nearly doubling a record first quarter. However, Q2’s bitcoin sales only generated $2 million of gross profit for the company.


Square also had its Q3 earnings call today, again reporting $2 million in profit on $148 million in quarterly bitcoin sales.


Jack Dorsey image via Shutterstock

News Feed

Alice Ivey10 hours ago9 AI coding tools every developer must knowExplore nine crucial AI coding tools that empower developers to streamline their workflow, from machine learning frameworks to code editors.1247 Total view
William Suberg20 hours agoBlackRock ETF stirs US Bitcoin buying as research says ‘get off zero’Bitcoin is a must-own as the world’s only truly scarce asset, analysis argues, as U.S. BTC accumulation takes a leg up.
Claim Your First NFT Top-Level Domain for Web3 on Quik․com
Claim Your First NFT Top-Level Domain for Web3 on Quik․com sponsored NFT domainsenable users to establish a presence on the decentralized web and the metaverse, with Quik.com prov
TRUMP Coin Spikes 17% As Arthur Hayes Says It Could Outperform Bitcoin
Este artículo también está disponible en español. The former BitMEX CEO, Arthur Hayes, is making a bold prediction for the TRUMP meme coin: it will outperform Bitcoin if
Bank of England’s Governor Warns About Crypto Amid Bloodbath — ‘Be Prepared to Lose All Your Money’
Bank of England"s Governor Warns About Crypto Amid Bloodbath — "Be Prepared to Lose All Your Money" The governor of the Bank of England, Andrew Bailey, has reiterated his warning
CoinSpot Is Ideal Starting Point for Australian Investors to add Crypto to Portfolios in 2021
CoinSpot Is Ideal Starting Point for Australian Investors to add Crypto to Portfolios in 2021 PRESS RELEASE. As the most trusted platform to buy, sell and exchan
Bitcoin headed for ‘screwy price action’ after 64% surge in first quarter
Ciaran Lyons3 hours agoBitcoin headed for ‘screwy price action’ after 64% surge in first quarterBitcoin recorded its third-strongest quarter over the past three years in Q1, but analysts say the meteoric rise could a
Aave contemplates fee distribution in DeFi shake-up
Amaka Nwaokocha53 minutes agoAave contemplates fee distribution in DeFi shake-upThe fee switch will allow governance to control and adjust fee-related policies based on the platform’s needs and objectives.260 Total vie
Ezra Reguerra10 hours agoBlockchain gaming sees $2.3B in investments year-to-date: ReportData from decentralized app tracking platform DappRadar shows that $600 million in investments flowed into the blockchain gaming sp
Ukraine Now Takes Polkadot, Says It Will Accept Other Coins Soon
Ukraine Now Takes Polkadot, Says It Will Accept Other Coins Soon Having already raised millions of dollars in major cryptocurrencies like bitcoin, Ukraine is now receiving donation
Ontario Regulator Lets Security Token Startup Test Secondary Trading
The Ontario Securities Commission (OSC) is allowing a tokenization startup to facilitate secondary-market trading of its tokens by giving the firm regulatory relief for a short time.
CoinShares revenue surges 110% in Q2, driven by FTX claim sale
Ana Paula Pereira4 hours agoCoinShares revenue surges 110% in Q2, driven by FTX claim saleCoinShares revenue for the second quarter of 2024 rose to nearly $28.5 million. FTX bankruptcy proceedings generated a return of 1