Bitcoin News Today: Square's Zero-Fee Bitcoin Move Forces Payments Industry Reckoning

Square's Move to Zero-Fee Bitcoin Payments Sparks Industry Shift

Jack Dorsey's Square has launched a Bitcoin payment feature for its 4 million global merchants, offering zero transaction fees until 2027—a stark contrast to the 1.5%-4% rates typically charged by credit card networks, according to Cointelegraph. The feature, unveiled in mid-November, allows sellers to accept Bitcoin-to-Bitcoin, Bitcoin-to-fiat, fiat-to-Bitcoin, and fiat-to-fiat transactions through its point-of-sale system, as TradingView reported. This rollout, years in the making, marks a pivotal moment in Bitcoin's journey from speculative asset to mainstream payment tool.

The zero-fee model is a strategic move to accelerate Bitcoin adoption. Square's Bitcoin service, already used by businesses in the U.S., France, the U.K., and Japan, now enables merchants to convert a portion of daily card sales into Bitcoin, a feature introduced in October 2025, according to Cointelegraph. "This isn't just about convenience—it's about redefining how businesses think about money," said Dorsey in an X post. Early adopters, including Texas-based coffee roaster Medici, have already reported using the service, as Cointelegraph reported.

The decision to waive fees until 2027 aligns with Square's broader vision for Bitcoin as a "functional currency," as Dorsey has long advocated, as TradingView reported. Competing with traditional payment giants like Visa and Mastercard, which are nearing a landmark settlement to reduce interchange fees by 0.04%-0.07% over several years, according to Manila Times, Square's approach could pressure legacy networks to innovate. The Visa-Mastercard agreement, expected to resolve a two-decade legal battle, also grants merchants more flexibility to surcharge or reject certain cards, as Belbalady reported.

Industry observers highlight the cost advantages. Square's Bitcoin fees—0% until 2027—undercut the 1%-4% rates of credit card processors, according to Cointelegraph. For small businesses, this could mean significant savings. "Bitcoin isn't just a store of value anymore," said Parker Lewis, head of business development at Zaprite. "It's a tool that helps merchants compete."

The timing of Square's move is strategic. Bitcoin's price has rebounded to $105,000, up 1.74% in 24 hours, as TradingView reported. Meanwhile, the Visa-Mastercard settlement reflects broader industry pressure to lower costs for merchants, who have long criticized the duopoly's "anti-steering" rules, as Inc.com reported. The new agreement, if finalized, would allow merchants to steer customers toward cheaper payment methods—a shift that could reshape the $10 trillion global payments market, as Bitget reported.

Square's initiative has also drawn attention to its potential to expand Bitcoin's utility. By integrating it into everyday transactions, the platform addresses one of the cryptocurrency's key limitations: adoption as a medium of exchange. "This is a win for Bitcoin and for small businesses," said Katie Ananina, CMO of CitizenX, who reported using the feature at a Texas coffee shop, as Cointelegraph reported.

The Bitcoin community has responded enthusiastically, with users demanding maps to locate Square-accepting merchants, as TradingView reported. Critics, however, remain skeptical about scalability and volatility risks. For now, Square's zero-fee model offers a compelling alternative, particularly as traditional payment networks face regulatory and competitive pressures.