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Cash App Offers Payments in Bitcoin, BTC Roundup and Lightning Network Services

At the Bitcoin 2022 conference in Miami, Block, Inc., formerly Square, Inc., announced three new bitcoin services for the company’s mobile payment platform. The Cash App mobile payment platform will feature a “bitcoin payment” service that allows users to automatically invest their work payment in bitcoin.

Cash App adds 3 new Bitcoin services

Jack Dorsey’s Block announced in Miami that the Cash App mobile payment system will offer three new features. The San Francisco company explained that the first feature will be a “bitcoin payment” service that allows people to convert their payment into bitcoin (BTC).

Cash App users will be able to convert 1% or even 100% of their payroll into the main crypto asset. The Block, who also runs Spiral, TIDAL and TBD, explained at the conference that the team has been working on the idea since 2019.

The next service the company unveiled was a bitcoin rounding service that basically allows Cash App users to round up change for bitcoin (BTC) purchases. Essentially, transactions from the user’s Cash App card will round up purchases and automatically transfer the change to the user’s BTC wallet.

Block is not the first company to introduce bitcoin payment services or BTC rounding services, as the concepts have been around for some time. For example, people can also leverage Coinbase or Bitwage to receive cryptocurrency payments, and Bundil and Roundlyx offer round-up BTC products.

The third Cash App feature announced at the Miami Bitcoin conference was “Lightning Network (LN) Reception” with a seamless Bitcoin user experience. Bitcoin UX will leverage unified QR codes using the Bitcoin BIP 21 improvement proposal.

The QR code can combine Lightning Network invoices and on-chain information to make the process easier for Cash App users. The Cash App has already enabled LN payments since its introduction in January, but now users can take advantage of receiving unified QR codes to accept LN payments directly. The Cash App move follows Atlanta-based payment processor Bitpay, which announced support for LN on Wednesday.

Recent breach leaves 8 million Cash app customers exposed

Cash App news follows the company’s troubles with a former employee causing a massive data breach. Reports show that 8 million Cash App users were affected as the former employee was accused of downloading information linked to customers in December.

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The Cash app is ready to bring the Bitcoin Lightning Network to its 36 million users

The Lightning Network has been integrated into the Cash App, a peer-to-peer payment service operated by Block, formerly Square Inc.

The function allows transactions between parties that are not connected to the blockchain network. It was created to solve scalability issues with the leading cryptocurrency.

With a transfer rate of five transactions per second (TPS) and an average transaction price of $1.79, Bitcoin is well under the mark in terms of payments.

$1.79 is a bargain compared to April 2021 highs, when transactions averaged $62.78. However, any transaction costing more than a few cents is impractical as a widely accepted payment method.

With its Tier 2 solution, the Lightning Network offers massive scalability and low transaction costs.

It operates by diverting transactions from the main chain and placing them in peer-to-peer “payment channels” between two parties, such as a shopper and a coffee shop. Once the channel is created, it can handle infinite transactions in real time.

The payer must first block Bitcoin on the network to open a payment channel. Once the recipient is blocked, you can bill amounts based on the cost of items and services sold.

Fees are a combination of routing fees for sending payment information between Lightning Nodes and Bitcoin transaction fees for opening and closing channels. These, however, are still much smaller than direct main-chain transactions.

In November 2021, the total amount locked in USD (TVL) of the Lightning Network peaked at $216 million. Since then, TVL has been reduced.

TVL blocked on lightning network. Source: DeFiPulse

Block CEO Jack Dorsey, who was previously the CEO of Twitter, has long advocated including the tool. “It’s not an ‘if’, it’s more a ‘when,'” Stephan Livera told the podcaster in 2019 that they would combine the scaling technology with payment provider Block’s mobile app.

“We don’t think it stops buying and selling [bitcoin],” he commented.

Steve Moser, editor-in-chief of TheTapeDrive and contributor to MacRumors, tweeted in November that Cash App “is working on Lightning network integration.” Moser said he found evidence that the Cash App was gearing up to release the additional features in December.

Square’s Cash app is working on Lightning network integration. $ SQ #Bitcoin #cashapp #LightningNetwork

According to the latest data from Business of Apps, Cash App had over 36 million users in the US and UK.

BTC/USD is trading below $%k. Source: TradingView

Related article | Number of Bitcoin Lightning Network Nodes Increases 23% in Three Months

The Cash app isn’t the only one to add the feature

Argentina-based Belo App said on Monday that it has partnered with infrastructure provider OpenNode to enable Lightning Network access to its users.

Julie Landrum, head of growth at OpenNode, stated that the agreement allows millions of people in Latin America to perform fast Bitcoin transactions.

Last month, Ethereum blockchain software startup ConsenSys announced a solution that makes blockchain technology scalable on the Ethereum Mainnet or for private use, along with Mastercard.