Key Takeaways
- •Square now allows Bitcoin payments via the Lightning Network with instant USD settlement.
- •Merchants will pay zero fees until 2027, after which a 1% transaction fee applies.
- •The rollout excludes New York due to state-level licensing restrictions.
Payments giant Square, owned by Block Inc., has launched Bitcoin payments for its U.S. sellers starting November 10, 2025. The move lets roughly 4 million merchants accept Bitcoin through the Lightning Network, with the option to receive funds directly in Bitcoin or instantly settled in U.S. dollars.
The feature follows months of testing, first previewed during Bitcoin 2025 in Las Vegas and later trialed at Compass Coffee in Washington, D.C. Square’s rollout underscores parent company Block’s long-standing ambition to bring Bitcoin into everyday commerce — an effort championed by Jack Dorsey, who has repeatedly emphasized Bitcoin’s role in building open financial systems.
Instant Settlement and Zero Fees Through 2027
Merchants using Square’s new system can process Bitcoin transactions in seconds, thanks to the Lightning Network’s scalability. The company’s backend automatically handles real-time exchange rate calculations and settlement preferences. For early adopters, Square is waiving all processing fees until 2027, after which a 1% transaction fee will be introduced, still lower than many traditional payment gateways.
Building on “Bitcoin Conversions” and Expanding Accessibility
The new feature builds upon Square’s “Bitcoin Conversions” program, launched in October 2025, which allows sellers to automatically convert a percentage of their daily card sales into Bitcoin. Together, the two tools position Block as one of the most Bitcoin-integrated financial platforms in the U.S.
While the rollout covers nearly every state, New York remains excluded due to local regulatory barriers around virtual currency licensing.
Broader Bitcoin Strategy Under Block Inc.
Block’s initiative reflects a deliberate push to normalize Bitcoin as a medium of exchange rather than merely an investment asset. Analysts note that pairing Lightning payments with automatic fiat settlement could remove volatility concerns for merchants while quietly accelerating Bitcoin’s use in small business ecosystems.
As Bitcoin adoption deepens, Square’s move could set a new standard for payment firms balancing crypto innovation with real-world usability.