Square is a payment processing company founded in 2009 by Jack Dorsey, the co-founder, and CEO of Twitter. Dorsey is a cryptocurrency enthusiast and believes that bitcoin would become the world’s only currency in about a decade.
An article by hacked.com reported that based on the data by Statista, the company’s gross payment volume reached US$ 21.37 billion. The company received US$ 2.2 billion worth of annual net revenue and the transaction revenue occupied over 87% of the total.
The US Patent and Trademark Office (USPTO) has approved Square to begin the development of a new system that allows merchants to accept payment in FIAT currency and cryptocurrency. This patent was filed in September 2017. Square said that they received a New York BitLicense in mid-June.
The patent reveals that the disclosed technology focuses on the payment service’s necessity to accept a wider variety of currencies, especially virtual currencies. The technology has to provide a better service compared to the traditional payment systems in the area of customer-merchant transactions.
The payment service has to either solve or mitigate the transaction-related problems applicable to such currencies. It also has to be capable of managing transactions in real-time while providing the freedom of choice for the customers and merchants in the type of money for sending and receiving payments.
The patent talks about a system in within where processing of cryptocurrency payments are done around the same speed as traditional transactions. The whole process can be done through a private blockchain that records transactions in real time. The system could help in removing latency in the blockchain transactions.
When the system is rolling out, Square will follow in the footsteps of their competitor BitPay who has been offering a similar service to millions of merchants globally doing business in cryptocurrencies. Jack Dorsey mentioned on Twitter on May 2018 that “The internet deserves a native currency. It will have a native currency. I don’t know if it will be Bitcoin or not. I hope it will be a Bitcoin”.
There are other companies, apart from Square, like Bakkt, who are trying to integrate cryptocurrency payments to their system. Bakkt is an open, seamless global cryptocurrency platform that has already been backed by Microsoft and Starbucks. Bakkt has conveyed their interest in tapping into the worldwide economy that spent about $25 trillion in credit card and online shopping fees.
Square’s crypto-enabled trading app, Square Cash, has witnessed a consistent user growth despite the shaky market in 2018. Nomura, a trading giant, said that the app was growing three times faster than Venmo in July.
Though they received the patent, it’s not clear when Square intends to use the license or if they ever will. Despite that, the news will be seen as another small step towards the mass adoption of cryptocurrencies as currently only a meagre percentage of people has adopted cryptocurrencies. It was initially foreseen that cryptocurrencies are used as payment and if a masses accept and embrace such a method of payment, then the prediction might become a reality.