Key Takeaways
- Square Bitcoin terminals enable 4M+ merchants to accept instant, low-cost BTC payments.
- Merchants can keep payments in BTC or convert to USD, with zero fees until 2027.
- Integration with Cash App and Lightning Network makes Bitcoin practical for everyday purchases.
Bitcoin has just taken a big step toward everyday use. Square, the payments company owned by Jack Dorsey’s Block Inc., is now letting more than 4 million U.S. merchants accept Bitcoin (BTC) payments through their Square checkout systems.
With the new Square Bitcoin terminals, the customers can now buy things like coffee, clothes, or haircuts, using bitcoin, while merchants can choose to keep the money as bitcoin or have it automatically converted into U.S. dollars.
The feature is powered by the Lightning Network, a Bitcoin technology that makes transactions fast and cheap. For now, Square says there will be no processing fees until 2027, giving businesses a few years to try the new system for free.
Cash App, another Block subsidiary, complemented the move by adding the location of the businesses that have the terminal up and running on its interactive map.
“You can expand your customer base by accepting Bitcoin payments and automatically receive them as BTC or USD,” Square said. “Plus, get zero processing fees until 2027, no chargebacks, and instant access.”
Square has made Bitcoin payments as simple as using a credit card. When a customer wants to pay with Bitcoin, they scan a QR code on the Square terminal. The payment is processed instantly over the Lightning Network.
Merchants can then decide whether to keep the bitcoin or have it converted to dollars right away. This helps protect them from bitcoin’s price changes.
“Our sellers can now receive BTC to BTC, BTC to fiat, fiat to BTC, or fiat to fiat,” said Jack Dorsey, co-founder of Block and long-time Bitcoin supporter.
Because Bitcoin payments don’t go through banks or card networks, they are instant, irreversible, and have no chargebacks—a big advantage for small businesses that often lose money to card fraud or refund disputes.
The new feature could save merchants time and money. Traditional credit card payments can take a few days to clear and usually charge 2–3% fees. Bitcoin payments through Square settle in seconds and are free until 2027.
Square’s system also helps with automatic reports and taxes, and merchants can even choose to convert up to 50% of their daily sales into bitcoin through a new feature called “Bitcoin Conversions.”
Merchants can choose to move their bitcoin from their Square wallet to self-custody manually, but there are currently limits of a maximum $15,000 per day or $50,000 per week.
Refunds can’t be sent in bitcoin since transactions are final, but Square will issue refunds as digital gift cards for the same dollar amount.
Jack Dorsey has been one of Bitcoin’s biggest supporters. He has often said he believes Bitcoin could become “the internet’s native currency.”
“We’re making Bitcoin payments as seamless as card payments,” said Miles Suter, the Bitcoin Product Lead at Block. “Through Square and Cash App, we’re helping Bitcoin become everyday money — not just a store of value.”
The move connects Square’s business users and Cash App’s customers, many of whom already use Bitcoin. Now, people can both spend and receive bitcoin within Block’s ecosystem.
The first live test of Square’s Bitcoin payments happened at Compass Coffee in Washington, D.C., during DC Fintech Week. After that successful pilot, Square rolled out the feature nationwide—except in New York, where stricter digital asset rules still apply.
This development led to excited users rushing to their favorite shops to try out the new feature.
Amid the excitement, something surprised Bitcoiners, and many are talking about it. The terminals show prices in sats, but the Bitcoin logo appears next to the amount, which has confused some users.
Experts say Square’s move could be a game-changer for Bitcoin, turning it from an investment asset into something people actually use for daily purchases.
There are still challenges ahead. Some merchants may worry about regulations or bitcoin’s price swings. But Square’s instant conversion option and simple setup make it easier than ever to try bitcoin payments safely.
For small businesses, the benefits are clear—no bank middlemen, lower costs, faster payments, and access to a growing base of Bitcoin-friendly customers.
