Square Enables Bitcoin Payments in Advance Nationwide

Block-owned payment platform Square announced that it will fully enable Bitcoin BTC payment options for eligible U.S. merchants. Bitcoin Square, which was originally launched at the end of last year as a “manual add-on,” is now being opened as “enabled by default.” By expanding Bitcoin’s everyday payment use cases for in-person merchants through the Lightning Network, eligible micro-merchants can enjoy zero-fee benefits before 2027.

Square adjusts its strategy, rolling out Bitcoin payment capabilities across the board in advance

Square’s Bitcoin payment feature, which previously required merchants to set it up manually, will now directly be rolled out to millions of merchant terminals. According to comments from Miles Suter, head of product, when Square Bitcoin was launched at the end of last year it adopted a merchant opt-in model. Square has now decided to switch Bitcoin payments to a default setting. Eligible U.S. merchants won’t need to adjust any settings and can choose the Bitcoin payment option at checkout. For merchants who don’t want to participate, the system still retains the ability to manually opt out, ensuring that operators have the freedom to choose. Suter said that Square’s large merchant network gives Bitcoin a better chance to become a circulating medium for everyday transactions.

Square performs real-time settlement via the Lightning Network in the back office

Square currently has about 4 million merchants that can use Bitcoin payments, automatic replacement, and built-in wallets, with all features available to complete in a dashboard for managing sales and banking operations. To overcome Bitcoin’s tendency for sharp price fluctuations, Square has built an automated conversion mechanism in its back office. When a customer selects to pay with Bitcoin, the system clears the transaction in real time via the Lightning Network and converts the assets into U.S. dollars (USD) at the moment the transaction occurs. For merchants, the default settlement currency they receive remains fiat money, effectively preventing exchange-rate risk tied to digital asset price movements.

Square Bitcoin payments will maintain zero-fee benefits before 2027, using this to attract small-scale retailers such as coffee shops, beauty salons, and other everyday spending scenarios, increasing transaction frequency and convenience.

Cash App, a mobile payments app under the same Block group, had earlier optimized its Bitcoin service, including lowering fees and increasing withdrawal limits. It has now raised the daily withdrawal limit to $10k. By connecting Cash App with Square merchant endpoints, a complete closed-loop is formed—from consumers’ everyday payments to merchants receiving funds.

Although Square fully enables Bitcoin payment features, it is still subject to limitations from local regulations and business qualification reviews. Merchants in New York State are not included in the automatically enabled scope due to the impact of certain virtual currency regulatory rules. In addition, merchants must meet Square’s internal verification standards to become eligible.

This article, Square rolls out Bitcoin payment features in advance, was first published on Chain News ABMedia.