Some users of the Cash App, which is owned by payments company Square, can now deposit bitcoin, according to reports.
Users could previously buy, sell and transfer bitcoin through the app, which is available on both Android and iOS, but now some users can deposit it as well.
The Cash App added bitcoin compatibility in November of 2017, and it was eventually released to all users. It is not known when the deposit feature will be released for all users.
On Square’s support page, the company says that “support for bitcoin deposits to third-party wallets is coming soon. In the meantime, you can transfer profits from selling bitcoin to any bank account or debit card linked to your Cash App.”
Square brought in about $65.5 million in revenue by market cap from bitcoin in Q1 of 2019, although actual profit was $832,000. The company also has a bitcoin-specific unit called Square Crypto, which is hiring developers to work on bitcoin blockchain. The company recently hired former Google Director Steve Lee for the team.
According to a report from Nomura Instinet Analyst Dan Dolev, the data also shows a slowdown in Venmo’s user acquisition. While year-over-year growth for Venmo still beats the Cash App at 35 percent versus 19 percent, the growth in new mobile payment app downloads of Venmo has slowed down, compared to increases of 54 percent in April, 47 percent in March and 44 percent in February.
But while Square’s Cash App has shown significant growth, it will take time to catch up to Venmo, said Cornerstone Advisors Senior Director Tony DeSanctis. “I think the bottom line is that the download number is a function of growth rate, since Square is so much smaller,” he said, according to Bank Innovation.