Square officially enables Bitcoin payments: 4 million merchants enter a new era of cryptocurrency transactions

Bitcoin Makes Its Official Debut in Brick-and-Mortar Payments

Square, the global payment technology leader, has announced that its worldwide POS terminals now support Bitcoin (BTC) payments. This is the first large-scale integration of cryptocurrency into physical retail through standardized payment channels. The launch spans eight countries—including the United States, Japan, the United Kingdom, and France—enabling over 4 million merchants to accept BTC for purchases. Customers can pay for coffee, lunch, or books simply by scanning a QR code with their smartphones.

(Source: Square)

Square’s system also features automatic fiat conversion, allowing users to choose their preferred payment and settlement methods. This streamlines the checkout process, reduces costs, and improves transaction efficiency.

Lightning Network Elevates Payment Experience

To solve the persistent issues of slow Bitcoin transaction speeds and high fees, Square has adopted the Lightning Network layer-two solution. This technology allows transactions to settle almost instantly, eliminating delays caused by mainnet confirmations.

Square has committed to zero transaction fees until the end of 2027, after which fees will be just 1%—well below conventional credit card rates of 1.5% to 4%. Merchants benefit from lower costs and are protected from chargeback risks, since Bitcoin transactions are irreversible once confirmed.

Three Flexible Settlement Models Integrated

With this update, Square introduces flexible payout options so merchants of all sizes can tailor settlement to their needs:

• Full Bitcoin Settlement: Ideal for merchants who support crypto.

• Full Fiat Conversion: Allows merchants to avoid exposure to price volatility.

• Automated Partial Conversion: Automatically convert up to 50% of daily sales to BTC.

These choices empower merchants to balance returns and risk. They also enable a gradual transition into the crypto payments ecosystem.

Global Expansion and Regulatory Hurdles

Square’s Bitcoin payment service is now live in eight countries, but regulatory differences have prevented availability in places like New York State. Square has pledged ongoing collaboration with local regulators and is rolling out merchant education to help businesses navigate tax and compliance requirements.

Square is currently testing features such as online checkout, subscription payments, and invoice issuance. Broader rollout is expected soon to create a comprehensive crypto payment ecosystem for merchants.

Market Reaction and User Feedback

The announcement has generated an enthusiastic market response, with retailers and restaurants among the first to try out the new features. Parker Lewis, Zaprite's head of business, tested the system at a Texas coffee shop and praised its speed and smooth user experience.

(Source: ryanfinlay)

Early adopters are also sharing their experiences on social media, viewing this as a major milestone in bringing cryptocurrency into everyday life.

Conclusion

Square’s Bitcoin payment solution represents a fundamental shift for global payments. Powered by Lightning Network technology and a zero-fee strategy, Square is advancing the integration of traditional commerce and crypto finance. This offers merchants and consumers greater transactional freedom. While regulatory challenges and evolving consumer habits persist, this move is undeniably accelerating Bitcoin’s evolution from an investment asset to a practical payment tool. For founder Jack Dorsey, this is more than a product update—it’s a decisive step toward reshaping the future of finance.