Bitcoin News Today: Square's Bitcoin Push Challenges U.S. Bancorp's Payment Dominance

Jack Dorsey's Square, now a core unit of Block Inc., has expanded Bitcoin payment capabilities to over four million merchants, marking a pivotal step in mainstream cryptocurrency adoption. The rollout, announced in November 2025, leverages the Bitcoin Lightning Network to enable instant, low-cost transactions via QR code scans at checkout Square rolls out bitcoin payments to four million merchants. Merchants can choose to retain Bitcoin or convert it to U.S. dollars in real time, with Square handling exchange rate calculations and settlement. The company is offering zero transaction fees for Bitcoin payments until year-end 2026, after which a 1% fee will apply—still lower than typical credit card processing rates of 2.5%–3.5% Square rolls out bitcoin payments to four million merchants.

The move aligns with Square's broader strategy to dominate small- and mid-market commerce. In Q3 2025, Square's gross payment volume (GPV) grew 12% year-over-year to $67.2 billion, with international markets driving 26% growth compared to 8.9% in the U.S. Square Statistics 2025: Inside Block's Big Wins. The company's full-year 2025 gross profit guidance was raised to $10.243 billion, reflecting strong adoption of its integrated software ecosystem, which boosts sales by an average of 9% for users Square Statistics 2025: Inside Block's Big Wins. Square's hardware revenue also rose 14% in 2025, fueled by upgraded point-of-sale systems and mobile readers.

The Bitcoin integration builds on Square's reputation for innovation in merchant services. Its "Square Handheld" device, launched in 2025, unifies mobile and in-store operations, while unified subscription plans (Free, Plus, Premium) simplify access to its software suite Square Statistics 2025: Inside Block's Big Wins.

The company's expansion into cross-border payments is evident in markets like the UK and Australia, where international transaction volumes grew 15% in 2025 Square Statistics 2025: Inside Block's Big Wins.

Industry analysts view the Bitcoin rollout as a strategic countermeasure to competitors like PayPal and U.S. Bancorp, which are also investing heavily in digital payments. U.S. Bancorp, for instance, highlighted its 26% revenue contribution from payments at a recent conference, emphasizing infrastructure upgrades and marketing to retain market share Square Statistics 2025: Inside Block's Big Wins. Meanwhile, Square's 48 Net Promoter Score (NPS) in 2025—well above PayPal's 31—underscores its strong merchant loyalty Square Statistics 2025: Inside Block's Big Wins.

Critically, Square's Bitcoin feature addresses lingering skepticism about cryptocurrency's practicality. By using the Lightning Network, Square mitigates scalability concerns, enabling near-instant transactions with minimal fees. This approach contrasts with traditional blockchain networks, which often struggle with speed and cost. The company's decision to allow merchants to hold Bitcoin also aligns with growing demand for crypto assets among small businesses, particularly in tech-savvy sectors like e-commerce and fintech startups.

Square's expansion reflects broader trends in the $394.88 billion global fintech market, where North America holds a 34% share Square Statistics 2025: Inside Block's Big Wins. With 70% of Square's GPV coming from small- and medium-sized businesses, the platform's focus on affordability and ease of use positions it to capture market share from legacy payment processors. The company's 2025 stats also highlight its dominance in the U.S. merchant-acquiring space, where it ranks first in the number of served merchants Square Statistics 2025: Inside Block's Big Wins.

As Bitcoin adoption gains traction, Square's move could pressure traditional banks to accelerate their own crypto strategies. U.S. Bancorp, for example, processes nearly $1 trillion in annual purchase volume but faces stiff competition from fintechs leveraging digital-first approaches Square Statistics 2025: Inside Block's Big Wins. Square's ability to combine hardware, software, and financial services into a cohesive ecosystem gives it a unique edge in an increasingly competitive landscape.