US-based financial technology conglomerate Block has decided to link its merchant services system Square and peer-to-peer payments app Cash App . Specifically, the new feature aims to enable eligible users to automatically convert a portion of their daily sales into Bitcoin (BTC).

This feature, named Bitcoin Conversions, is designed to cater to sole proprietors or single-member LLCs initially, with plans for a wider rollout to Square customers in the coming months. Through Bitcoin Conversions, participating Square users will have a portion of their revenues, ranging from 1% to 10%, directed into a dedicated Cash App account where it will be converted into BTC. Users will then have the flexibility to hold, sell, or transfer the acquired Bitcoin as desired.

According to coindesk.com, Block conducted market research among Square sellers, revealing a demand for such a product. Merchants expressed interest in Bitcoin as a means of long-term savings and diversification of their business holdings. Representatives from Cash App cited by the same source noted that Bitcoin Conversions aims to streamline the process for sellers while providing them with control over their Bitcoin management.

The new service carries a flat 1% conversion fee, lower than Cash App's 2.25% fee for retail purchases of Bitcoin. This fee structure presents a potential additional revenue stream for Block, contingent upon merchant adoption and conversion volumes. Cash App, known for its role in onboarding users into the Bitcoin ecosystem, appears to be central to Block's Bitcoin-focused initiatives.

In terms of financial performance, Block reported a total profit of USD 1.18 billion from its Cash App business in the previous year, indicating a 25% year-over-year increase. Square, on the other hand, generated a gross profit of USD 828 million. As of December, the company held approximately 8,038 BTC, valued at USD 531 million based on current prices.

More information about Bitkey Block launched the Bitkey self-custody bitcoin wallet in December 2023 to improve access to self-custody in multiple countries. Specifically, Bitkey was launched globally, spanning over 95 countries across six continents, an expansion that aims to support access to self-custody options, allowing individuals to exercise greater control and security over their Bitcoin holdings. According to Block, a substantial number of Bitcoin owners relied on custodial platforms or exchanges, relinquishing control to the respective custodians.

In this context, Bitkey offered a mobile app, hardware device, and some recovery tools to address potential loss scenarios involving the phone or hardware. Recently, Block began shipping pre-orders of its Bitkey bitcoin wallet, designed to facilitate seamless BTC purchases and transfers through Cash App. .