Bitcoin News Today: Square Onboards Merchants for Bitcoin Payments via Lightning Network, Aiming for 2026 Full Rollout with Lower Fees

Jack Dorsey’s Square, the point-of-sale division of Block Inc., has initiated a program to onboard merchants for Bitcoin payments, marking a key step in the company’s broader cryptocurrency strategy. The move, confirmed by Dorsey via a post on X on July 23, is the first phase of a plan to integrate Bitcoin transactions into Square terminals, with a full rollout expected by 2026. Early participants will test the system in a limited release, while larger-scale adoption will follow in the coming years.

The implementation leverages the Bitcoin Lightning Network, a second-layer solution designed to facilitate faster and cheaper transactions. Merchants can choose to retain the Bitcoin they receive or immediately convert it into fiat currency to mitigate price volatility. The system was first showcased at the Bitcoin 2025 conference in Las Vegas, where Square provided a preview of its technical framework.

Block, which owns Square, aims to reduce payment processing costs for both small and large retailers. Traditional credit card transactions typically incur fees between 1.5% and 3.5%, while Bitcoin payments through Square settle in minutes at lower rates. This aligns with the company’s ongoing efforts to streamline fintech operations and expand its role in the crypto ecosystem.

The initiative complements Block’s wider Bitcoin-focused initiatives, including a self-custody wallet called Bitkey, a 8,584 BTC treasury, and investments in Bitcoin mining infrastructure. The company also reinvests 10% of Bitcoin-related gross profits into monthly BTC purchases, reinforcing its commitment to the asset class. Regulatory engagement is another priority, with Block advocating for federal licensing frameworks and tax incentives for small Bitcoin transactions. These efforts gained momentum after the U.S. House passed the Digital Asset Market Clarity Act on July 17.

While Square enters a competitive market—where PayPal, Coinbase, and BitPay already accept Bitcoin—the platform’s non-custodial model offers a distinct approach. By giving users full control over their Bitcoin, Square aligns with decentralized finance principles. However, challenges remain. Many merchants lack familiarity with crypto payments, and consumer preference for traditional methods persists. To ease adoption, Block provides automatic fiat conversion and simplified setup tools, aiming to minimize friction during the transition.

Block’s broader growth is underscored by its upcoming inclusion in the S&P 500, which highlights its expanding influence in both fintech and digital assets. The Bitcoin onboarding initiative, paired with regulatory advocacy and infrastructure development, underscores the company’s strategic focus on positioning itself at the intersection of traditional and emerging payment systems.