Square Enables Bitcoin Payments via Lightning Network with Fiat Settlement

Block Inc. launches Bitcoin payment option to 4 million U.S. Square merchants, offering Lightning-enabled transactions with free processing until 2027 and flexible conversion between crypto and fiat.

BTC

Summary

Block Inc., led by Jack Dorsey, began rolling out Bitcoin payment integration to about 4 million Square merchants in the U.S. on November 10, 2025. The feature enables point-of-sale Bitcoin transactions over the Lightning Network, allowing merchants to settle in BTC or automatically convert to fiat. Sellers can also choose to convert up to 50% of daily card sales into Bitcoin. Processing fees are waived until January 1, 2027, after which a 1% fee applies. The rollout excludes certain regions like New York, with adoption hinging on consumer demand, merchant setup, and regulatory compliance.

Terms & Concepts
  • Lightning Network: A layer-2 payment protocol enabling faster and cheaper Bitcoin transactions by processing them off-chain.
  • Fiat settlement: The process of converting cryptocurrency payments into government-issued currency for final transaction clearing.
  • Point-of-sale (POS): A system where retail transactions are completed, enabling merchants to process payments and record sales.