In a bold move towards mainstream adoption of cryptocurrency, Square, Inc. — the payment-processing company co-founded by Jack Dorsey — has officially introduced a new functionality allowing merchants on its platform to accept payments in Bitcoin at the point of sale (POS). This development signals not only a stronger commitment by Square (and its parent company Block, Inc.) to crypto, but also offers merchants a broader choice in how they receive and convert payments.
What the announcement entails
According to Dorsey’s post on X (formerly Twitter), sellers using Square’s system will now have the flexibility to accept payments and manage conversions in multiple ways:
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Bitcoin to Bitcoin (BTC → BTC)
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Bitcoin to fiat currency (BTC → fiat)
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Fiat to Bitcoin (fiat → BTC)
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Fiat to fiat (traditional payments)
Furthermore, for transactions conducted at the physical point of sale, Square currently offers zero transaction fees for Bitcoin payments through 2027. After that date, the expectation is that a fee of about 1 % will apply — still significantly lower than typical credit-card processing fees in the 1.5%-4% range.
Square also announced a new online map within the Cash App ecosystem showing locations globally where merchants accept Bitcoin payments. Dorsey encouraged users to “convince your local Square seller to turn on Bitcoin acceptance for zero fees on sales” and to “keep it as Bitcoin to help them better survive dollar debasement.”
Why this matters
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Reduction of friction for merchants
By integrating Bitcoin payments directly into the POS and allowing multiple conversion flows, Square simplifies what has traditionally been a complex step for businesses looking to accept crypto. -
Cost-advantage through zero fees (initially)
Offering zero fees until 2027 gives merchants a strong incentive to try the new payment method, making crypto payments more competitive with traditional card systems. -
Push toward crypto ecosystem growth
Since Square has over four million merchant customers across eight countries (including the U.S., France, U.K., and Japan) according to the article, the potential reach is substantial. -
Symbolic signal to the wider market
As a major fintech player embracing Bitcoin payments at scale for merchants, this move may encourage other payment providers and merchants to follow suit.
Potential implications and considerations
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Liquidity & conversion risk: Although the option to convert Bitcoin to fiat is offered, fluctuations in Bitcoin’s price can still pose risks for merchants unless they convert immediately or hedge exposure.
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Regulatory and compliance environment: Crypto payments must still contend with regulatory frameworks which vary by country — merchant adoption may depend on clarity in their jurisdictions.
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Merchant readiness and education: While the features are available, successful uptake will depend on merchants being aware of the options, being comfortable with crypto, and updating their internal workflows.
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Market momentum for crypto payments: The article cites a survey by YouGov (July, based on 1,000 respondents in the U.S. and U.K.) that 37% see payments as a leading use-case for crypto and AI.
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Dollar “debasement” theme: Dorsey’s message encouraging merchants to hold Bitcoin to “survive dollar debasement” is a more ideological one — suggesting that beyond payments, Bitcoin is a store of value hedge in his view. This narrative might appeal to certain merchants, but others may remain focused purely on payment efficiency.
What to watch for next
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Expansion of the feature to online payments and invoicing: The article notes that while currently available for in-store POS payments, online/invoice support is under development.
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Roll-out across additional geographies: With initial coverage across eight countries, the timing and regulatory logistics for new countries will be key.
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Merchant adoption rates: Metrics such as how many merchants activate the feature, what share of transactions run through Bitcoin, and how transaction fees evolve.
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Fee schedule after 2027: The promise of a 1% fee is appealing, but how it will compare to other services and whether additional tiers or currency flows will apply remains to be seen.
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Interactions with broader payment & crypto networks: How this move may influence Visa/Mastercard payment rails, fintech startups, and other crypto payment processors.
Conclusion
Square’s new Bitcoin-payment capability for merchants is a meaningful milestone — combining merchant-friendly cost incentives, flexible conversion options, and widespread potential reach through its existing base. While challenges around volatility, regulation, and merchant readiness remain, the announcement reflects an evolution in how payments infrastructure is adapting to include crypto as a first-class option.
For merchants and consumers alike, this could mark a step toward a world where paying with Bitcoin is as seamless as using a debit or credit card — at least for those who choose to enable it. It remains to be seen how quickly the market will respond, but for now, Square has positioned itself as a leader in merchant crypto payments.
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