(Kitco News) - Cash App, a mobile payment processing application created by Block Inc., has added support for the Bitcoin Lightning Network, enabling faster and cheaper Bitcoin transactions.
Based on a new page added to the Cash App support section on Oct. 25, users can now send and receive Bitcoin on the more efficient layer-2 payment protocol. The service is ideal for small transactions as it offers near-instant processing times as compared to the hours it can sometimes take to verify transactions on the Bitcoin network.
Previously, the platform offered limited support for Bitcoin transactions via the Lightning Network, with users confined to paying for invoices generated as a Lightning QR code. The new update allows users to send or receive BTC without restrictions – aside from a seven-day transaction limit of $999.
All Cash App transactions that involve QR codes will now default through the Lighting network unless otherwise specified or in the event that the transfer exceeds the $999 limit.
The new service is only available to users in the United States, excluding residents of New York state.
The popular mobile application first began to support Bitcoin trading back in 2018 and has since become the go-to application for BTC purchases for millions of users in the U.S. and U.K.
According to data provided by Buy Bitcoin Worldwide, Cash App generated $12.3 billion worth of revenue in 2021, of which 81% came from Bitcoin transactions. The app's gross profit for that year was $2 billion, its highest reported annual profit.
As of July 2022, the application had more than 44 million monthly active users and over 100 million downloads. 13 million users currently have the Cash App debit card.
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While there is a limit on transactions over the Lightning Network, Cash App users are allowed to deport up to $10,000 worth of Bitcoin every seven days, and the app provides a suite of services to help determine any tax implications.
It also offers a “Paid in Bitcoin” feature that will automatically invest a predefined portion of any funds that are added to a user's Cash App account via direct deposit. The transaction fee associated with all other Bitcoin transactions is around 2%.
According to data provided by 1ML, the Lightning network currently has 81,402 payment channels with a total network capacity of 5,120.95 BTC, which represents an increase in capacity of 6% over the past 30-days.
