Seamless Bitcoin Integration at Checkout
Square, a payment processor owned by Block Inc., has launched its new Bitcoin payment feature, allowing merchants to accept Bitcoin directly at the point of sale (POS). This integration is currently available for in-person transactions through Square's POS system.
Jack Dorsey, co-founder of Block, announced the rollout, detailing that sellers can now select from various payment options: Bitcoin-to-Bitcoin, Bitcoin-to-fiat, fiat-to-Bitcoin, or fiat-to-fiat. This provides merchants with comprehensive control over their financial transactions.
Jacob Szymik, an account executive at Square, indicated that while Bitcoin payments are presently limited to physical stores, online and invoicing functionalities are actively being developed. Future updates are expected to expand the integration beyond in-person purchases.
Incentivized Adoption with Zero Fees Until 2027
To encourage merchant adoption, Square is offering its Bitcoin payment feature with no transaction fees until 2027. Following this introductory period, Square plans to implement a 1% fee on Bitcoin transactions, which is competitive compared to traditional credit card processing fees that typically range from 1.5% to 4%.
The system includes a built-in conversion tool that enables merchants to automatically convert a portion of their card sales into Bitcoin. This feature simplifies the process for sellers who wish to hold Bitcoin without manual intervention. The service was initially revealed last month as part of a larger initiative by the company to merge digital assets with conventional payment systems.
Hunter Horsley, CEO of Bitwise Invest, highlighted the significance of this feature, stating that it empowers "four million merchants to now accept Bitcoin as a medium of exchange." He further commented on the growing acceptance of digital currencies in retail commerce, noting that "it's all happening."
Jack Dorsey's Vision for Bitcoin as the Internet's Native Currency
Jack Dorsey has consistently championed Bitcoin as the "native currency of the internet." Through Block, he continues to make substantial investments in Bitcoin infrastructure. Block currently holds over 8,000 BTC, with a value approximating half a billion dollars.
In 2024, Block reported a gross profit of $21.9 billion, reflecting its growth in both financial technology and cryptocurrency innovation. The introduction of Bitcoin payments is a key step in Dorsey's broader vision of an open financial system that connects users and businesses globally.
This new Bitcoin feature builds upon an enhancement Square introduced in October, which allowed sellers to automatically invest a portion of their daily card sales in Bitcoin. This development moves Square closer to its objective of integrating digital assets into everyday payment processes.
Early Adoption and Positive User Experiences
The new feature has already seen adoption from local businesses in the United States. Parker Lewis, head of business development at Zaprite, shared his experience using the feature to purchase coffee at Medici, a coffee roaster based in Texas.
Lewis expressed enthusiasm for the integration, stating, "Great day for Medici Square, with all the Square merchants going live with Bitcoin and Bitcoin in general. Bitcoiners, support your local Square merchants."
Katie Ananina, Chief Marketing Officer at CitizenX, also confirmed her participation as an early user of the Bitcoin payment option. She described the long-standing challenges of onboarding merchants to accept BTC and noted that Square's new feature "makes the entry point so much lower" for businesses, deeming the update "absolutely legendary."
The integration is now live in eight countries, including the United States, France, the United Kingdom, and Japan, underscoring Square's commitment to merging digital currency with real-world transactions.