The world’s number one cryptocurrency bitcoin certainly has the multiplier effect on any industry. Since its emergence almost a decade ago, it has stolen the hearts of many. Square is the latest firm to benefit from the crypto craze.
Square’s Soaring Shares
Square, the overtly bank-like tech company who are the developers of Square Cash app announced in November 2017 that its customers will be able to trade bitcoin at a no charge rate via its cash payments app.
Following the announcement of its support for bitcoin, quite a number of new customers were attracted to it; Square’s shares quickly multiplied making its past achievements in the finance industry look like mere child’s play.
Square’s (SQ) Stock Price at Fresh Highs for 2018
Although the company had been experiencing a consistent rise in their share price, the integration of bitcoin into their business operations immediately graced the firm with a mouthwatering reward.
The Bank Affair
The San Francisco-based firm, run by CEO Jack Dorsey, has delivered reasonable growth over the years, and this growth is believed to have been powered by its strategic partnerships with highly reputable banks.
Square cash can be likened to a checking account which allows users to conveniently receive deposits from employers as well as withdraw cash with their Cash Card in partnership with Sutton Bank.
In its shareholders’ letter, Square mentioned:
“These features provide customers who may not have access to traditional financial services with an easy way to store and access their money.”
It should be noted that the Square Cash payment app had acquired more than seven million monthly users by December 2017. There is a similar discussion ensuing between Amazon and large banks like J.P. Morgan and Capital One according to The Wall Street Journal. Customers without bank accounts and younger clientele are meant to be pulled to a “checking-account-like product” that is backed up by an online retailer. Even though J.P. Morgan’s Jamie Dimon did not affirm to the gossip he believes that the bank already dominates when it comes to millennials.
Without a doubt Square is slowly approaching the bank’s territory, all things being equal.
The firm is best known for its card-payment dongle; it has also spread its tentacles into other areas like inventory tracking and accounting for retailers. The company recently borrowed out $305 million to small business owners.
Meanwhile Square sees the trading of bitcoin as a way to attract new customers especially because most major banks are still very unsure whether to thread that part.
Although Square had $17.9 billion of gross payment volume in the fourth quarter compared to their counterpart PayPal which had $131 billion in total payment volume; as the saying goes “despise not the days of humble beginning.” Square’s progress suggests that smaller companies with ambition should never be down the sideline. Bitcoin is indeed a long-term path for those who seek financial liberation as digital currency market continues to grow immensely.