Square owned by Jack Dorsey announces integration of Bitcoin (BTC) payments, causing a 10% surge in Block, their parent company, following S&P 500 addition.
In a significant move for the crypto industry, Square, a division of Block Inc. (formerly Square), has begun rolling out a new feature that allows select merchants to accept Bitcoin payments directly through its existing point-of-sale (POS) terminals[1][2][3]. This development is poised to make Bitcoin more accessible and usable in everyday life.
Key Features of the Bitcoin Payment Rollout
- Transactions processed through the Bitcoin Lightning Network: This Layer-2 protocol enables near-instant, low-cost transactions by creating micropayment channels off the main blockchain[1][3].
- Choice for merchants to keep payments in Bitcoin or convert them to US dollars: This flexibility caters to merchants who prefer to hold crypto or avoid price volatility[1][2].
- Simplified Bitcoin payment acceptance: The integration aims to lower transaction fees by cutting out credit card fees (typically 1.5–3.5%) and make crypto payments as seamless as credit card ones[2][4].
- Rollout started with a pilot at the Bitcoin 2025 conference in May, with plans to make this feature available to all merchants on its platform by 2026[3].
- Alignment with Jack Dorsey's vision of promoting Bitcoin as a global currency and practical payment method: This initiative fits into Dorsey’s broader vision of bridging cryptocurrency with traditional finance via Block's ecosystem, including tools like Cash App and self-custody wallets[2].
This move is significant as it enables over 4 million merchants to process Bitcoin payments both in-person and online without additional hardware or software upgrades. The addition of Bitcoin to Square's platform makes it easy for customers to pay by scanning a QR code at checkout.
Sources
- The Block
- Decrypt
- CoinDesk
- Bitcoin Magazine
- The Bitcoin Lightning Network, a Layer-2 protocol, is being utilized in Square's new feature, allowing Bitcoin transactions to be processed quickly and at low cost, bypassing the main blockchain.
- Merchants have the choice to either keep Bitcoin payments or convert them to US dollars, catering to both those who prefer to hold cryptocurrency and those aiming to avoid price volatility.
- This initiative, following Jack Dorsey's vision of advancing Bitcoin as a global currency and practical payment method, is expected to align to Block's broader business strategy, integrating cryptocurrency with traditional finance through tools like Cash App and self-custody wallets.