- Square has launched a limited pilot for Bitcoin payments using the Lightning Network, with broader availability targeted for 2026.
- Merchants can choose to keep Bitcoin or convert it to fiat instantly, minimizing exposure to price volatility during transactions.
- The rollout supports Block’s growing crypto ecosystem, including its wallet, Bitcoin treasury, and mining infrastructure.
Square, the point-of-sale service under Block, Inc., has begun allowing a select group of merchants to accept Bitcoin payments. The move, announced by Block co-founder Jack Dorsey on July 23 via X, marks the start of a phased rollout targeting full deployment by 2026. The system is available in a controlled release for early adopters.
The integration uses the Bitcoin Lightning Network to allow quicker and cheaper transaction processing. Merchants can receive payments in Bitcoin and either retain the cryptocurrency or convert it immediately to fiat currency. This optional feature is designed to protect sellers from potential price swings.
Designed for Both Small and Large Businesses
According to Block, the system was built to support a broad range of retailers. By offering an alternative to traditional credit card systems, the company aims to lower transaction fees, which typically cost between 1.5 and 3.5% per sale. In contrast, Bitcoin transactions through the Lightning Network settle in minutes and at reduced costs.
The pilot complements Block’s broader cryptocurrency strategy, which includes an 8,584 BTC corporate treasury, the development of Bitkey self-custody wallets, and Bitcoin mining operations. Additionally, the company reinvests 10% of its Bitcoin-related gross profit into monthly Bitcoin purchases.
Support for Regulation and Broader Access
To increase the popularity of Bitcoin in business, Block has endorsed new federal regulations, such as a licensing regime for digital assets and a tax break on smaller Bitcoin transactions. These efforts have gained a boost with the recent enactment of the Digital Asset Market Clarity Act by the House of Representatives in the U.S.
Although Square is involving itself with a situation where platforms such as PayPal, Coinbase, and BitPay already transact bitcoins, it attracts its users through a non-custodial setup. Such a structure provides merchants with greater authority over their assets, which coincides with decentralized finance aspects.
This is notwithstanding its launch; however, its usage is still a problem. Most of the tradespersons are not well acquainted with the Bitcoin payment systems, and some consumers are adamant about using the conventional systems. To manage the transition, Block has been attentive to simplifying the setup and instant conversion to local currency.
