Payment platform app Square just surpassed Coinbase as the world’s most popular iOS app for buying bitcoin. Square, which is operated by Twitter CEO Jack Dorsey, surpassed Coinbase earlier today, as reported by CCN.com. Square’s bitcoin buying app is called Cash App.
Cash App didn’t just surpass Coinbase: the app is currently at the top of the charts for free mobile apps on the iOS store, ahead of popular mainstream apps like YouTube.
— Miles Suter (@WahWhoWah) December 8, 2018
This indicates rising demand for digitized payment solutions in the U.S. mobile app market. How did Square’s Cash App suddenly take over from its well-established competitor, Coinbase? Let’s take a closer look.
Accessibility is King
Square initially rose to prominence as a payment platform for merchants, allowing merchants to easily accept various payments on mobile devices. Merchants could avoid conventional point of sale solutions or options like PayPal.
Long before Square’s Cash App integrated bitcoin, the platform was already being used as a popular online payment platform. Millennials and other tech-friendly individuals are increasingly turning to solutions like Square and Venmo over conventional banking systems.
Square’s popularity among tech-savvy business owners and millennials helped it position itself perfectly for the rise of cryptocurrency. Some of the most prominent crypto users in the world are millennials.
Today, Square’s Cash App makes it easy to purchase bitcoin. In fact, Cash App might be the easiest way for an average American to purchase bitcoin. The Square app is already connected to your bank accounts and credit cards. You can buy bitcoin using your traditional payment methods with just a few taps from within the app.
Compare Cash App’s process to using an exchange. A conventional cryptocurrency exchange requires you to complete KYC verification, wait several days for a wire transfer or similar transfer to be completed, and then make a trade on the exchange’s orderbook.
Users looking for a fast and easy way to buy crypto over their mobile device would be hard-pressed to find an easier solution than Cash App.
Square is the Best Option for American Crypto Users
It’s no secret that tech-savvy mobile users want a fast and easy way to buy crypto on their phones. Other app developers overseas have already realized that.
In South Korea and China, for example, users are jumping on board apps like KakaoPay and AliPay, both of which function like Venmo and Square stateside: they’re alternative money transfer apps that work with the conventional banking system while offering quick and easy money transfers.
Square and its Cash App is simply the best option for American users.
Square Isn’t Trying to Monetize Its Bitcoin Trading At This Time
One of the other reasons why Square’s Cash App is so popular is because it’s not focused on profitability: the company has stated that its bitcoin service is not designed to be a major monetization engine for the company.
“It’s not a major monetization engine. The goal is to continue to drive utility in the Cash App,” explained Square CFO Sarah Friar earlier this year in an interview with CNBC.
The short-term goal of Square’s Cash App is to boost utility and attract users. In the future, the company might emphasize profitability with its bitcoin trading services.
For now, however, the company is focused on creating the best possible user experience.
“Bitcoin, for us, is not stopping at buying and selling. We do believe that this is a transformational technology for our industry, and we want to learn as quickly as possible,” explained Jack Dorsey, CEO of Square, in an interview.
Ultimately, Cash App has overtaken Coinbase on crypto exchanges for now – but it remains to be seen if that will continue moving forward. Today, Cash App is the number one trending app on the iOS mobile app store, but things can change quickly in the world of crypto.