Square Turns Bitcoin Into a Checkout Option—Changing How Small Businesses Get Paid

Block, Inc., the parent company of Square, announced in May 2025 that it will begin rolling out a Bitcoin payment feature for Square merchants, with a full launch expected by 2026. The feature, powered by the Lightning Network—a layer-two scaling solution for Bitcoin—enables merchants to accept Bitcoin payments through existing Square hardware. The rollout, which will begin in the second half of 2025, allows businesses to either hold the received Bitcoin or instantly convert it to fiat currency in real time, depending on their preference. The initiative was announced at the Bitcoin 2025 conference in Las Vegas, where attendees were able to test the payment system at the BTC Inc. merchandise store.

The integration builds upon Square’s existing Bitcoin-related offerings, including the Bitcoin Conversions feature introduced in 2024, which automatically converts a portion of merchants’ daily sales into Bitcoin. This new functionality aims to streamline the acceptance of Bitcoin for everyday transactions, addressing long-standing concerns such as slow transaction times and high fees. For consumers, the process is as simple as scanning a QR code at checkout, while Square handles the backend operations, including exchange rate calculations and confirmation notifications.

According to Miles Suter, Block’s Bitcoin Product Lead, the initiative is about empowering small businesses by giving them more options in payment acceptance. “When a coffee shop or retail store can accept Bitcoin through Square, small businesses get paid faster and get to keep more of their revenue,” he stated. The feature aligns with Jack Dorsey’s broader vision of Bitcoin as a decentralized, peer-to-peer payment system rather than merely a speculative asset. Suter emphasized that this move brings Block one step closer to realizing Bitcoin’s original purpose as outlined in its whitepaper.

The Lightning Network’s role in this rollout is critical. By enabling near-instant, low-cost transactions, the network makes Bitcoin a viable option for small-ticket purchases such as groceries and coffee. This technology allows multiple transactions to occur off-chain before being settled on the main blockchain, reducing congestion and enhancing efficiency. Merchants using Square’s Point of Sale system will benefit from this streamlined process, which minimizes the barriers to Bitcoin adoption, including volatility and complexity.

Square’s integration of Bitcoin payments has also drawn interest from other businesses. Stake n’ Shake, a major American fast-food chain, has adopted Bitcoin as a payment method, with its CEO reporting a 50% reduction in payment processing fees compared to credit cards. The company plans to expand its Bitcoin acceptance to all global locations starting in May 2025. This real-world application of Bitcoin underscores the potential for cost savings and increased accessibility for both merchants and consumers.

Block is also enhancing its broader Bitcoin ecosystem, including the Bitkey self-custody wallet introduced in March 2024. Starting in May 2025, Bitkey will roll out new privacy and security features to simplify user control and protection. These features eliminate the need for traditional seed phrases and offer users full control over their funds, with inheritance-based recovery options for added security.

Despite these advancements, regulatory approvals remain a key factor in the feature’s expansion. The rollout is subject to compliance with applicable laws and oversight from financial authorities. Block faces additional regulatory scrutiny in this space, having recently been fined $40 million by the New York Department of Financial Services (NYDFS) over AML compliance failures related to Bitcoin operations. However, the company continues to invest heavily in Bitcoin infrastructure, including mining operations through its Proto initiative, further signaling its commitment to the long-term viability of the cryptocurrency.

The broader implications of Square’s Bitcoin integration could accelerate the mainstream adoption of cryptocurrency, particularly among small and medium-sized businesses. By making Bitcoin a practical and accessible payment method, Block is addressing a key barrier to its widespread use. As more companies follow suit, the role of Bitcoin in everyday commerce may expand significantly, potentially reshaping the global financial landscape.