Square's decision to incorporate Bitcoin payments into its application could be a real cash cow for the company according to Credit Suisse. An analysis of the firm estimates that a turnover of $ 30 million is quite possible in the next two years.
Square recently announced a deployment to a limited number of customers, using mutualized portfolios to enable Bitcoin payments without the current top fees. This news dropped Bitcoin's price to $ 7,000 a week ago
This high-profile adoption of a major payment application is both positive for Square, which plunges, but Credit Suisse
Bitcoin recently broke through barriers that led to new, almost daily records. In terms of adoption, the other big news was that CME announced that it would soon be offering Bitcoin futures.
Now, with a payment application like Square joining the party, aimed at rationalizing the possibility of Bitcoin to be a functional currency, "While we are positive about Square's strategy, as far as where this gives Bitcoin legitimacy and encourages other suppliers to adopt the system, the biggest beneficiary may be the main beneficiary of Bitcoin.Cracto-asset industry, "said Credit Suisse analyst Paul Condra
Big boom coming
Taking a bit of prediction, Credit Suisse added that he believes that if Square can accumulate a good amount "
" We believe that If Square can rack up 10 million Bitcoin buyers over a two-year period, this could generate additional revenue of $ 30 million.
Condra said the company would He had to charge a fee of 1.5 percent per transaction and the average customer could spend about $ 200 a year on Bitcoin purchases, according to his estimates.
See if it's real
The financial director of Square, Sarah Friar, in their own way, listens to the growing noise that comes from the regular consumer. She explains that their foray into Bitcoin is still an experience, but that she is motivated by demand.
"The only way to convince people to know what's new is to create a product and get it there," Friar explained. "We have spent a lot of time listening, and what we have heard from our customers are individuals, who use Square Cash to make payments, saying that they want an easy way to buy and to sell Bitcoin, so we're doing an experiment to say: is this real? "
Things already seem positive for something that is supposed to be just an experience. But the attitude of Square could see them extend the experience if things continue on this path
Then there could be other adoptions given that many companies adopt a wait-and-see approach. If this becomes a success, as Credit Suisse predicts, this could trigger a much larger wave of adoption for payment networks to use Bitcoin.