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If someone chooses to pay in Bitcoin, there is the existing 2-3% transaction fee $SQ could play with to incentivize both sides of the transaction. The fee for merchants could be just 1%, saving them money vs. a credit card payment, and the purchase price could be 2% cheaper for customers. Or, customers could get 2% of the total automatically converted as “cash back” / “bitcoin back” into their (Cash app) wallet. I personally would choose to “Pay in Bitcoin” all the time if Cash App automatically converted my fiat dollar balance into bitcoin for the merchant upon payment, and I automatically received 2% “bitcoin back”. Much better than “cash back”!
Actually, I’m realizing that the math doesn’t work out as described above, but what I’m essentially saying is that credit card interchange fees don’t exist with bitcoin / lightning, so this savings could be repurposed toward giving merchants lower fees & incentivizing them to accept bitcoin, and/or towards consumers via bitcoin cash back.