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Cash App, Bitcoin sales significantly increased, surpassing fiat currency related services

Bitcoin sales jump with Cash App

Square’s money transfer app, Cash App, shows that Bitcoin sales are booming.

Square is headed by Twitter founder Jack Dorsey, who reported its financial results for the first quarter of 2020.

According to reports, the trading volume of Bitcoin increased 72% QoQ and 367% YOY. Bitcoin sales in the first quarter of 2020 reached $ 306 million. This number means that Bitcoin outperformed other fiat-related services in terms of cash app sales.

Cash App, Bitcoin sales significantly increased, surpassing fiat currency related services 24

On the other hand, although gross profit also reached a record high of almost double the level of bitcoin sales (up 367% year on year), the profit margin is low compared to fiat currency related services. It seems

Cash App What is the secret of growth?

What was behind the increased use of BTC?

Bitcoin may be receiving more attention due to large-scale monetary easing, but one reason is that the company has made efforts to improve user convenience.

Regarding last year’s growth, Jack Dorsey also revealed that he redesigned the user interface in September. After the redesign, the number of people who bought Bitcoin for the first time doubled. Cash App’s customers are mostly young people under the age of 30, and it is possible that a large percentage of people are not reluctant to the new measure of virtual currency value.

Furthermore, at the end of last year, the company is looking for human resources to add new functions such as “auto investment” and “BTC gift”, and is devising efforts to attract users to use virtual currencies.

In the current quarter’s report, Jack Dorsey said significant growth has come from facilitating direct deposits. Direct deposit users tended to use a lot of services such as peer-to-peer payment and bitcoin purchase. We’ve also worked with companies such as Twitch and Spotify to help fans directly support the creative industry. The Cash App has succeeded in releasing features that are appealing to users.

New Corona Crisis Will Help

The new Corona Crisis could also be a tailwind for Cash App.

Square, along with PayPal and others, also participates in an emergency payroll protection program run by the US government. It’s a program that provides a loan that allows corporate employees to keep their salaries for at least two months.

You can also receive cash stimulus benefits for the new Corona from the US government through the Cash App. Even people without a bank account can get their benefits more smoothly with a Cash App account.

Under the COVID-19 situation, Cash App is likely to be in the ideal position to contribute to the public good while also achieving performance.

Images used with Shutterstock license

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