
Square officially integrates Bitcoin payments in November 2025, allowing approximately 4 million merchants on the platform to accept BTC for checkout. Merchants only need to enable a setting on the dashboard, and the POS system will generate a Lighting Network invoice or QR code. Consumers can complete transactions by scanning with compatible wallets. During the promotional period, the fee is 0%, and around 1% will be charged starting in 2027.
For merchants, this feature brings instant settlement and cost advantages. Through the Lighting Network, payments are received in just a few seconds, far superior to the delays of credit card processes. The zero-fee policy significantly lowers the adoption threshold for small and medium-sized enterprises, as traditional card organization fees usually range from 1.5% to 4%. In addition, merchants can choose to hold BTC or convert it instantly to USD, avoiding the risk of price volatility, and there are no chargeback refund disputes.
The Lighting Network, as a Bitcoin Layer 2 solution, provides low-cost and high-speed payment channels. After merchants generate invoices, consumer wallets directly handle transactions, and the Square system supports multiple settlement paths: BTC→BTC, BTC→USD, USD→BTC, or USD→USD. This flexible design allows merchants to adjust their strategies according to market demand while maintaining the irreversibility and security of transactions.
Merchants can expand their customer base, attract encryption enthusiasts, and offer exclusive Bitcoin discounts. The platform even supports the automatic conversion of a portion of daily card payments into BTC, encouraging long-term holding. Consumers enjoy a more convenient payment experience, with Lighting Network transactions being fast, suitable for physical stores. This helps enhance the liquidity of Bitcoin, gradually transitioning it from an investment target to an actual consumption tool.
Despite the obvious benefits, the price volatility of Bitcoin remains a major challenge. If fiat currency is not converted instantly, merchants or consumers may face value loss. Currently, functionality is limited in areas such as New York State, and it takes time for consumer habits to develop. As competition intensifies in the future, other payment platforms may follow suit, potentially diluting advantages. It is recommended that merchants monitor market dynamics and diversify risks.
Square’s move accelerates the mainstream adoption of Bitcoin payments, which is expected to encourage more merchants to participate in encryption checkout. With the maturation of infrastructure and educational promotion, the penetration rate of Bitcoin in retail scenarios is expected to increase. This not only strengthens Square’s payment ecosystem but also opens a new chapter for the everyday application of cryptocurrencies.











