Approval of the payment network with square cryptocurrency


The San Francisco Square-based digital payment company received a patent application on August 29 for a system that allows merchants to accept cryptocurrencies (in addition to conventional payment methods such as USD) and collect their cryptocurrencies in a currency of their choice.

According to the patent,

"Disseminated technology meets the demand in the art of a payment service able to accept a greater diversity of currencies …including virtual currencies including cryptocurrencies (bitcoins, ether, etc.) … of a traditional payment system in a transaction between a customer and a merchant, and in particular for a payment service to solve or improve problems related to transactions with such currencies. Specifically, the payment service described here can facilitate transactions in real time (or substantially in real time), allowing the customer to pay in any currency of his choice, while the merchant can receive payment in a currency of his choice. "

If and when implemented, Square would be the first payment processor to offer a direct gateway for its merchants to automatically accept and convert the cryptocurrency into their local currency.

A critical component of the patent outlines how The POS system could eliminate the notorious latency problems in cryptocurrency transactions. This means that Bitcoin transactions could be approved at about the same speed as the standard credit card.

To do so, a private blockchain will have to register the Square transactions in real time so that the POS system can identify the new balances before the transactions are added to the main public blockchain. Also note that the risk of double-expense attacks would switch from the merchant to the payment service.

The two issues mentioned above were the main obstacles to a greater number of merchants who accept cryptocurrency.

Square founder and CEO Jack Dorsey (also co-founder and CEO of Twitter) has proven to be a valuable aid for cryptocurrency and bitcoin as a payment system. He has also invested in projects such as Lightning Labs, a Bitcoin startup working on a second-level payment protocol to accelerate Bitcoin transactions at "lightning-fast" speed.

Jack Dorsey

Jack Dorsey, current and managing director of two highly active listed companies. Jack Dorsey, current and managing director of two highly active listed companies. CREDIT: CHRIS PAVLICH NEWSPIX / REX / SHUTTERSTOCK

In the first quarter of 2018, Square reported total net revenues of $ 669 million, $ 34 million of which were sourced from the bitcoins collected after Square launched the opportunity to buy and sell bitcoins on its Cash App in January 2018. *

* Bitcoin turnover was calculated as the total amount of bitcoin sales to customers, with costs equal to the total sum of Bitcoin Square purchased to facilitate transactions. Revenue adjusted in the first quarter of 2018 is $ 0.2 million related to bitcoin.

The complete patent can be found Here.

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