Jack Dorsey and Square: Are They Challenging PayPal?

Jack Dorsey may not be known for promoting unfiltered speech, especially considering his past actions on Twitter, but he is recognized as a strong advocate for cryptocurrency. His Cash App, associated with Square (now rebranded as Block), transcends simple peer-to-peer transactions, evolving into one of the most user-friendly cryptocurrency wallets available today.

Why Cash App is Dominating the Crypto Scene

Cash App is not just another payment app; it serves as a fully operational custodial crypto wallet. Users can actually utilize their bitcoins purchased through the app, unlike the static balances on platforms like PayPal or Robinhood.

“I don’t think there’s anything more important in my lifetime to work on [referring to Bitcoin].” — Jack Dorsey, CEO of Block

Furthermore, bitcoins bought on other platforms such as Binance or Coinbase are easily transferable to a user’s Square wallet.

Comparing PayPal and Cash App

Although PayPal boasts a significantly larger user base (377 million compared to Cash App’s 36 million), the latter provides a more effective vehicle for owning and utilizing Bitcoin. PayPal limits users to a digital balance without actual ownership or transfer capabilities, thus reducing its practical use cases.

Cash App allows for a more straightforward process similar to purchasing Bitcoin from exchanges like Coinbase and Binance, ensuring that once users withdraw their coins, they are entirely under their control.

In contrast, PayPal permits transactions with multiple cryptocurrencies, including Bitcoin, Ethereum, and Litecoin, but lacks the true ownership model that Cash App provides. The limitations of Cash App include a maximum Bitcoin addition of $10,000 and weekly purchase limits, but its user experience edges out PayPal for crypto enthusiasts.

Conclusion

Every limitation from Cash App signals potential improvements as Dorsey envisions a more liberated cryptocurrency experience. The stark differences between Cash App and PayPal underline the growing rivalry in the cryptocurrency transaction landscape.