Bitcoin News Today: Square's Bitcoin Breakthrough: Lightning Network Powers Practical Merchant Payments

Block, Inc., the parent company of Square, announced a significant expansion of its cryptocurrency services, enabling merchants to accept Bitcoin payments via the Lightning Network. The feature, unveiled at the Bitcoin 2025 conference in Las Vegas, will allow Square's 2 million active merchants to process Bitcoin transactions through existing point-of-sale (POS) devices, with a rollout expected in the second half of 2025 and full availability by 2026, pending regulatory approvals. This initiative builds on Square's 2024 launch of "Bitcoin Conversions," which automatically allocates a portion of daily sales into Bitcoin for eligible merchants.

The integration leverages the Lightning Network, a layer-2 solution that facilitates near-instant, low-cost transactions by processing payments off-chain before settling on the Bitcoin blockchain. This addresses Bitcoin's historical scalability issues, making it practical for everyday purchases like coffee or groceries. For merchants, the system eliminates credit card fees and chargebacks, while customers pay by scanning a QR code at checkout. Miles Suter, Bitcoin Product Lead at Block, emphasized that the move aligns with Square's mission to "empower economic freedom" by giving merchants flexibility in payment options.

Square's broader Bitcoin ecosystem includes Cash App's trading capabilities, Bitkey-a self-custody wallet-and Proto, a suite of mining products. Bitkey, launched in March 2024, will introduce enhanced privacy and inheritance-based recovery features to simplify self-custody for users. Block's mining initiatives aim to decentralize Bitcoin's network by providing tools for builders of all sizes, further solidifying its commitment to the cryptocurrency's long-term sustainability.

The rollout follows a successful pilot with 1,500 businesses, where merchants embraced the autonomy to manage Bitcoin receipts and conversions. Larger chains with multiple locations showed particular enthusiasm, integrating Bitcoin as a natural extension of their payment systems. Square's approach allows merchants to hedge against price volatility by converting Bitcoin to fiat instantly, while also offering the option to retain Bitcoin for potential appreciation.

Analysts highlight the strategic value of this expansion. Mizuho analysts recently raised Block's stock price target to $71, citing Bitcoin integration as a growth catalyst. However, challenges remain, including regulatory scrutiny and the need for the Lightning Network to scale reliably for high-volume transactions. Square's conversion tools and regulatory compliance strategies are designed to mitigate these risks.

The initiative could accelerate Bitcoin's mainstream adoption by bridging the gap between crypto and traditional commerce. With 4 million merchant devices potentially enabled by 2026, Square's move positions Bitcoin as a viable alternative to credit card payments, particularly for small businesses seeking faster settlements and lower costs. As Block CEO Jack Dorsey noted in a blog post, the company's vision is to make Bitcoin "everyday money," fostering a decentralized financial system that prioritizes user control and efficiency.

[1] Block to roll out bitcoin payments on Square (https://squareup.com/us/en/press/block-to-roll-out-bitcoin-payments-on-square?msockid=2d426dd134f9656c201c7b5135a36464)

[2] Why Square Is Opening the Door to Bitcoin | Square (https://squareup.com/us/en/the-bottom-line/inside-square/square-opening-the-door-to-bitcoin?msockid=2d426dd134f9656c201c7b5135a36464)

[3] Square's Bitcoin Payment Revolution via Lightning Network (https://www.cryptovate.io/bitcoin-square-lightning-payment-revolution-2026/)