Square Brings Bitcoin Payments to 4 Million U.S. Merchants

The payment company, owned by Block Inc., announced Square Bitcoin on October 8, 2025. This marks one of the biggest steps toward making cryptocurrency work for everyday purchases. With 4 million merchants already using Square terminals, the reach is massive.

How It Works for Merchants

The system runs on the Lightning Network, which processes Bitcoin transactions in seconds instead of minutes. Customers scan a QR code at checkout, and the payment goes through almost instantly.

Merchants get two choices: keep the Bitcoin or convert it to dollars right away. This flexibility helps businesses avoid Bitcoin’s price swings while still benefiting from lower fees.

According to Block’s announcement, Square handles all the technical work behind the scenes, including exchange rate calculations and payment confirmations.

The company tested this system at the Bitcoin 2025 conference in Las Vegas back in May. Attendees bought merchandise using Bitcoin, proving the technology works in real retail settings. In July, Square started onboarding its first group of merchants. Full availability for all eligible sellers is expected by 2026.

Major Cost Savings

Payment processing fees eat into business profits. Credit cards typically charge merchants 1.5% to 3.5% per transaction. Bitcoin payments through Square cost less—and through 2026, they’re completely free.

Starting in 2027, Square will charge a 1% fee, still cheaper than card processing. Even at 1%, that’s less than Square’s current lowest card rate of 2.6% plus 15 cents.

Real businesses are already seeing results. Dan Edwards, who runs operations for Steak ‘n Shake, reported cutting payment fees in half after adopting Bitcoin. “When customers choose to pay in Bitcoin instead of credit cards, we are saving about 50% in our processing fees,” Edwards said at the Bitcoin conference.

For a restaurant processing thousands of transactions monthly, those savings add up fast.

Built-In Bitcoin Management

Square Bitcoin includes more than just payment processing. Merchants also get an integrated wallet to buy, sell, hold, and withdraw Bitcoin—all from the same dashboard they use for everything else.

There’s another feature called Bitcoin Conversions. This lets businesses automatically turn a portion of their daily card sales into Bitcoin. Merchants can convert up to 50% of their revenue, up from the previous 10% limit.

Since Bitcoin Conversions launched in 2024, participating sellers have accumulated 142 bitcoins, worth over $17 million. Joe Carlo, owner of Pink Owl Coffee, said his business built a strong financial reserve over two years using this feature.

Growing Crypto Payment Market

The timing makes sense. More Americans are using cryptocurrency for purchases, not just investing. A survey from eMarketer predicts U.S. crypto payment users will jump to 7.1 million in 2026—an 82% increase from 2024.

Merchant adoption is climbing too. Research shows that 46% of surveyed merchants now accept cryptocurrency payments. About 78% of Fortune 500 companies are testing or considering crypto for business payments.

Bitcoin holds the largest share of merchant crypto transactions at 42%, according to 2025 data. The Lightning Network is a big reason why. This technology makes Bitcoin fast enough for retail use.

Payment data shows Lightning Network usage more than doubled between 2022 and 2024. At one payment processor, Lightning payments grew from 6.5% of Bitcoin transactions to 16.6% in just two years.

Limits and Regulations

Not every Square merchant can use Bitcoin payments yet. The feature isn’t available in New York State or outside the U.S. Block needs regulatory approvals in different areas before expanding further.

This makes sense given the regulatory environment. In July 2025, President Trump signed the GENIUS Act, the first federal law setting clear rules for stablecoins. More regulatory clarity is coming, which should help crypto payments grow.

Block clearly believes in Bitcoin’s future. The company holds 8,480 BTC worth hundreds of millions of dollars. They also reinvest 10% of Bitcoin-related profits back into buying more Bitcoin every month through a regular purchase program.

Co-founder Jack Dorsey has long supported Bitcoin as a payment method, not just an investment. Block’s other products include Cash App for buying Bitcoin, Bitkey wallet for storage, and Spiral for funding Bitcoin development projects.

The Bottom Line

Square’s Bitcoin integration removes major obstacles that kept cryptocurrency out of retail. No special hardware. Instant transactions. Optional dollar conversion. Lower fees. Simple dashboard.

Whether Bitcoin becomes everyday money depends on adoption. But with 4 million potential merchant locations, zero fees for a year, and proven cost savings, Square just gave cryptocurrency its best shot at going mainstream. The next two years will show if small businesses and their customers are ready.