Square has announced its support for Bitcoin payments through the Square Market platform
Last week, the U.S. Internal Revenue Service classified Bitcoin as a property subject to tax regulation. This sent ripples through the Bitcoin community, largely due to the fact that the digital currency has existed without any significant regulation for the majority of its existence. Now, popular payments processor Square has announced that merchants using its Square Market platform will be able to accept Bitcoin payments. Square is currently only of the most prolific organizations in the mobile commerce space and one of the few that has shown any serious support for Bitcoin.
Fees on Bitcoin payments through the Square Market have not yet been announced
Using the Square Market, a merchant can list items on their websites and pay Square a 2.75% fee on every sale. Square has not yet announced whether or not any kind of fee will be tied to sales made using Bitcoin. Embracing Bitcoin may make Square significantly more popular among the digital currency’s legion of supporters. This popularity is also likely to extend to retailers accepting Bitcoin payments through the Square market.
Square continues to show dominance in the mobile commerce space through its powerful partnerships
In 2013, Square processed more than $20 billion in mobile payments. The company has established a strong foothold in the mobile commerce space through its partnerships with companies like Starbucks that have a strong interest in engaging mobile consumers. As people become more mobile-centric, they are beginning to use their smartphones to shop for and purchase products more regularly. Many of those participating in the mobile commerce space have shown interest in Bitcoin and other types of digital currency.
Accepting Bitcoin may have a positive impact on Square’s forthcoming IPO
Square has plans to launch an initial public offering (IPO) within the coming months. The Square Market is currently valued at over $5 billion ahead of this IPO and its acceptance of Bitcoin may have a positive impact on that valuation. Bitcoin does have detractors, however, many of whom criticize the unregulated nature of the digital currency and its attraction to hackers.