The statement explains that the commissions would be subject to Bitcoin price fluctuations in major US markets.
The Cash application of Square, the payment processing company led by Twitter CEO Jack Dorsey, announced the implementation of a 1.76% commission margin for Bitcoin buying or selling operations.
The company’s website stated:
“The Cash application may charge a fee when you buy or sell bitcoins. If so, the rate will be included in the commercial confirmation before completing the transaction.”
In relation to this new commission scheme, Square clarifies that it will handle two types of fees for transactions: One related to the service provided by the application, and an additional one mainly determined by the volatility seen in the price of the digital currency of agreement with the bags in the US
Square also clarifies that the purchase/sale of BTC through Cash will be determined by a rate calculated based on the prices seen in local markets, and that all associated information will be arranged in the application in the Bitcoin related tab.
After the publication of the announcement by Square, several users expressed their doubts through social networks, reporting that in one case the application charged 1% for a BTC purchase, while others charged 1.76%. Apparently these charges would be primarily associated with the amount of Bitcoin that is purchased through Cash.
A spokesman for the company confirmed that Cash App would be implementing a new commercial structure applicable to operations with Bitcoin, which compared to the one managed by Coinbase seems much more profitable for customers residing in the US if it is small purchases, resulting in the reverse for commercial operations over USD $170.
Good commercial performance
After opening the option to buy or sell Bitcoin through Cash, Square processed around USD $125 million in operations for the second quarter of this year, a figure that doubles the revenue reported for the first quarter of 2019.
By the time Cash first allowed customers to acquire or sell the digital currency, Square announced that it would not charge additional fees for these operations.
Although the third quarter recorded significant gains for the company, it is unknown if these measures could have a negative impact on the report for the remaining quarter. Possibly these results are also subject to fluctuations in the price of the digital currency for the remainder of the year, which could make it more or less attractive for investors to buy or sell Bitcoin.