Square Introduces Bitcoin Payment Option With Flexible Conversion Modes
Block, led by Jack Dorsey, launches Bitcoin payments for 4 million U.S. Square merchants, leveraging Lightning Network with fee-free transactions until 2027 before a 1% charge applies.
In an official announcement, Block rolled out a Bitcoin payment option to approximately 4 million Square merchants in the U.S., enabling acceptance at checkout via the Lightning Network for faster confirmation. Merchants can select settlement in BTC or automatic conversion to fiat, with configurations allowing BTC-to-BTC, BTC-to-fiat, fiat-to-BTC, or fiat-to-fiat transactions. Block will waive processing fees until January 1, 2027, after which a 1% fee per transaction will apply. Merchants may also convert up to 50% of daily card sales into Bitcoin automatically. Certain regions, including New York, are excluded from the current rollout. The initiative aims to drive real-world Bitcoin payment adoption, though uptake depends on consumer demand and merchant preferences.
- Lightning Network: A layer-2 payment protocol on top of Bitcoin, enabling fast, low-cost transactions by creating off-chain payment channels.
- Fiat Currency: Government-issued currency, such as the U.S. dollar, that is not backed by a physical commodity like gold.
- POS system: Point-of-sale system used by merchants to process sales transactions, now updated to accept Bitcoin payments.