Bitcoin News Today: Block Bridges Main Street and Bitcoin with Zero-Fee Merchant Tools

Block, Inc. (NYSE: XYZ) has launched Square Bitcoin, a fully integrated payments and wallet solution designed to enable local businesses to accept and manage Bitcoin (BTC) transactions seamlessly. The initiative, announced on October 8, 2025, marks a pivotal step in Block's long-term strategy to embed Bitcoin into everyday commerce. Square Bitcoin combines three core features: Bitcoin Payments, Bitcoin Conversions, and a native Bitcoin wallet, all integrated into Square's existing ecosystem. The service is available to eligible U.S. sellers, excluding New York State, and is subject to regulatory approvals for international expansion.

Square Bitcoin Payments allows merchants to accept Bitcoin at the point of sale with zero processing fees for the first year, a promotional period ending December 31, 2026. After this period, a 1% fee will apply starting January 1, 2027. The feature leverages the Lightning Network for near-instant transactions, addressing historical concerns about Bitcoin's speed and usability in retail. Merchants can choose to settle payments in Bitcoin or convert them to U.S. dollars automatically, offering flexibility to manage volatility. This zero-fee model aims to incentivize adoption by reducing barriers for small businesses, which typically face credit card processing fees of 2.6% or higher.

The Bitcoin Conversions feature, launched in 2024, enables merchants to automatically convert up to 50% of their daily card sales into Bitcoin. Early adopters, including businesses like Pink Owl Coffee, have accumulated 142 BTC as of October 1, 2025, demonstrating the tool's utility for long-term financial planning. By integrating Bitcoin into their cash flow management, merchants can diversify their savings without leaving the Square platform. This feature aligns with Block's broader vision of Bitcoin as a tool for economic empowerment, allowing small businesses to access financial instruments previously reserved for large corporations.

Square Bitcoin is part of Block's expanding Bitcoin ecosystem, which includes Cash App's trading capabilities, Bitkey (a self-custody wallet), Proto (mining products), and Spiral (open-source development). Miles Suter, Head of Bitcoin Product at Block, emphasized the initiative's role in bridging traditional commerce and digital currency: "We're making Bitcoin payments as seamless as card payments while giving small businesses access to financial tools that have been exclusive to large corporations." The integration of Bitcoin into Square's platform is designed to simplify adoption, removing technical complexities and aligning with consumer trends. eMarketer projects U.S. crypto payment users to grow by 82% between 2024 and 2026, underscoring the market's potential.

Square's move aligns with a broader industry shift toward crypto adoption. Competitors like PayPal and Stripe are also expanding crypto offerings, while institutions such as Visa and Mastercard test stablecoin-based cross-border payments. Block's zero-fee promotion contrasts with traditional payment networks, which charge higher rates, and positions Bitcoin as a cost-effective alternative. However, challenges remain, including regulatory uncertainty and Bitcoin's price volatility. Square's service is not available in New York due to regulatory restrictions, highlighting the fragmented legal landscape for crypto payments.

Block's Bitcoin initiatives are subject to regulatory scrutiny. The company operates in New York under Block of Delaware, licensed by the New York State Department of Financial Services, but Bitcoin services are excluded from its offerings there. Square Bitcoin's availability is also contingent on approvals in other jurisdictions. The company disclaims responsibility for Bitcoin's price fluctuations and transaction risks, advising merchants to verify payment details. Despite these caveats, Block's stock rose 2.5% following the announcement, reflecting investor confidence in its crypto strategy.

Square Bitcoin represents a significant step toward normalizing Bitcoin as a payment method, particularly for small businesses. By integrating Bitcoin into its existing tools and offering cost incentives, Block aims to accelerate mainstream adoption. The success of the initiative will depend on merchant uptake, regulatory developments, and Bitcoin's continued evolution as a practical medium of exchange. With 4 million U.S. merchants already using Square, the platform's scale positions it to influence the trajectory of crypto in commerce.

Source: [1] Block, Inc. (https://investors.block.xyz/investor-news/news-details/2025/Square-Brings-Bitcoin-to-Main-Street-With-First-Integrated-Payments-and-Wallet-Solution-for-Local-Businesses/default.aspx)

[2] CoinDesk (https://www.coindesk.com/business/2025/10/08/square-launches-bitcoin-payment-tools-for-small-businesses-expanding-crypto-access)

[3] Brave New Coin (https://bravenewcoin.com/insights/square-brings-bitcoin-payments-to-4-million-u-s-merchants)

[4] Cointelegraph (https://cointelegraph.com/news/square-bitcoin-payments-merchants-crypto)

[5] Yahoo Finance (https://finance.yahoo.com/news/square-unleashes-0-fee-bitcoin-221134011.html)

[6] Coindesk (https://www.coindesk.com/tech/2025/07/23/square-begins-rollout-of-bitcoin-payments-for-sellers-targets-full-availability-by-2026)

[7] Brave New Coin (https://bravenewcoin.com/insights/square-goes-full-bitcoin-millions-of-merchants-get-zero-fee-btc-payments)