Key Highlights
- •Bitcoin goes mainstream: Square enables over 4 million U.S. merchants (except NY) to accept BTC via the Lightning Network.
- •Zero fees until 2027: Merchants can settle in BTC or USD with no processing fees through 2026.
- •No banks, no chargebacks: Bitcoin payments bypass card networks, offering instant, irreversible transactions.
Square has officially activated Bitcoin payments across its network, allowing more than 4 million U.S. merchants (excluding those in New York) to accept Bitcoin (BTC) instantly at checkout. The update, announced on November 10, 2025, marks one of the largest real-world rollouts of crypto payments in history.
The Payments Run Over Digital Assets
Digital payments are entering a new phase as crypto and traditional finance begin to converge. Just days after Ripple and Mastercard announced their RLUSD stablecoin pilot for fiat settlements, another alliance has emerged to push blockchain payments forward.
The Blockchain Payments Consortium (BPC), formed by Fireblocks, Polygon, Stellar, Solana, TON, Mysten Labs, and Monad, aims to standardize stablecoin transactions across networks and financial systems.
The BPC aims to unify fragmented blockchains under shared standards for faster, safer, and interoperable payments. Today’s networks operate in isolation, creating friction in global transfers. The consortium plans to change that by making on-chain payments as seamless as legacy systems like SWIFT or Mastercard. With over $15 trillion settled on-chain in 2024, coordination is now urgent.
At the same time, Square is expanding its role in the digital payments ecosystem. As regulators and banks move closer to blockchain settlement, initiatives like BPC and Square’s expansion show how mainstream finance and crypto infrastructure are beginning to merge.
BTC at Checkout, Instant and Fee-Free
The new feature, simply called Bitcoin Payments, is integrated directly into Square’s point-of-sale system and powered by the Lightning Network. Customers can now pay in Bitcoin by scanning a Lightning invoice QR code, while merchants can choose to settle in BTC or U.S. dollars, depending on their risk appetite.
For now, Square is waiving processing fees through 2026, with a flat 1% fee taking effect in January 2027. The system supports instant settlement, automatic reporting, and integrated tax tracking inside the merchant dashboard.
Square CEO Jack Dorsey confirmed on X that sellers can now transact “BTC to BTC, BTC to fiat, fiat to BTC, or fiat to fiat,” signaling full interoperability between crypto and traditional payments.
Small-Business Friendly, Big-Business Scale
Each individual Bitcoin transaction is capped at around $600, with a daily limit of $15,000 per seller. Refunds cannot be issued back on-chain, since Bitcoin transactions are final, but will instead be processed via digital gift cards for the USD value of the purchase.
Because Bitcoin payments bypass card networks entirely, merchants also avoid chargebacks—one of the most costly issues in retail. This makes the feature especially attractive for small businesses facing high card fees and fraud risk.
Square’s Broader Bitcoin Strategy
Alongside Bitcoin Payments, Square also launched Bitcoin Conversions, a feature allowing sellers to automatically convert up to 50% of their daily card or ACH revenue into BTC held in a Square-managed wallet. Conversion fees are 1% for standard users and 0.5% for premium accounts.
The rollout currently covers U.S. merchants only, but Square hinted at global expansion pending regulatory approvals. The exclusion of New York vendors reflects the state’s strict BitLicense requirements.
Bitcoin Enters Everyday Commerce
Square’s move blurs the line between crypto and traditional finance, bringing Bitcoin payments to coffee shops, barbers, and local venues across the country. With Lightning Network support, payments settle in seconds—no cards, no banks, no middlemen.
For years, Bitcoin has been framed primarily as an investment or store of value. Square’s integration could change that narrative, transforming it into a practical, day-to-day payment option embedded in one of the world’s most widely used merchant platforms.