Cash App has introduced a revised Bitcoin fee structure that significantly lowers the cost of buying and using BTC on its platform, marking one of its most aggressive pushes yet to drive mainstream adoption.
On Feb. 9, the Jack Dorsey-backed payments company rolled out what it described as “zero to low fee” Bitcoin purchases. The update eliminates fees entirely for large Bitcoin transactions above $2,000, recurring auto-buy orders, and Bitcoin payments made through the Lightning Network. Eligible users will also see higher Bitcoin withdrawal limits.
For smaller transactions, a tiered fee model remains in place. Market buy and sell fees are set at 2% for purchases between $1 and $500, 1.5% for $501 to $1,000, and 0.9% for $1,001 to $2,000.
Compared with competitors that often charge between 1% and 2.5% per transaction, Cash App’s revised structure positions it competitively, particularly for high-volume and automated buyers.
Key Takeaways
- Cash App has eliminated fees on Bitcoin purchases above $2,000 and on all recurring auto-buy transactions.
- A tiered fee model still applies to smaller trades, ranging from 2% down to 0.9% depending on transaction size.
- Bitcoin payments made through the Lightning Network on Cash App now carry zero platform fees.
- All Bitcoin purchased on the platform is reportedly held 1:1 and remains available for withdrawal at any time.
- The fee overhaul comes as Bitcoin trades at $66,138.70, down nearly 5% in the past 24 hours.
Incentives Designed to Drive Bitcoin Usage
The zero-fee recurring buy feature stands out. Users who automate their Bitcoin purchases through Cash App’s auto-invest option will incur no transaction fees at all. This model encourages dollar-cost averaging, a popular strategy among long-term Bitcoin holders.
Similarly, waiving fees for transactions over $2,000 creates a clear incentive for larger investors to route trades through Cash App rather than rival exchanges. While transaction fees have traditionally been a key revenue stream for crypto platforms, Cash App appears to be prioritizing user growth and transaction volume over short-term margins.
Bitcoin spending via the Lightning Network also carries no fees under the new structure. Lightning enables near-instant, low-cost BTC transfers, and eliminating platform fees further strengthens the case for using Bitcoin in everyday payments rather than simply holding it as an asset.
Dorsey reacted to the rollout with a single-word post: “math.” The message underscores the company’s strategy — lower fees can translate into higher participation, which may ultimately drive greater network activity and long-term revenue opportunities.
1:1 Bitcoin Custody and Withdrawal Access
Cash App reiterated that all Bitcoin purchased on the platform is held on a 1:1 basis. In practical terms, this means the company maintains full backing for customer Bitcoin balances and allows withdrawals at any time, 24/7.
The company also confirmed that certain services—including the Lightning Network, Square Bitcoin, and Bitkey—are not available to New York residents. Additionally, Bitcoin services remain subject to licensing restrictions in some U.S. states and territories.
Market Context
The announcement comes during a short-term pullback in the crypto market. Bitcoin is currently trading at $66,138.70, down nearly 5% over the past 24 hours.
Despite the price dip, Cash App’s fee overhaul signals continued confidence in Bitcoin’s long-term role in payments. By reducing friction around buying, automating, and spending BTC, the platform is positioning itself as both an on-ramp for new users and a cost-efficient venue for seasoned holders.
For Cash App, the strategy is straightforward: lower barriers, increase participation, and let the numbers speak for themselves.
