Square Brings Bitcoin to Main Street With Fee-Free Payments, Stock Hits 8-Month High

Block’s Square Expands Its Bitcoin Vision, Offering Merchants Lightning-Powered Payments and Wallet Integration

TL;DR:

• Square launched Bitcoin payments for U.S. merchants, powered by the Lightning Network and free of processing fees for the first year.
• Merchants can hold or auto-convert BTC to USD, backed by Square’s new integrated Bitcoin wallet and conversion tools.
• Block’s stock climbed to an eight-month peak following the rollout, signaling growing investor confidence in the company’s crypto expansion.

Square, the payments arm of Jack Dorsey’s Block, officially rolled out its integrated Bitcoin payments solution on October 8, 2025, marking one of the company’s most significant steps in embedding cryptocurrency within everyday commerce. The new suite—called Square Bitcoin—enables U.S. merchants to accept Bitcoin payments directly at the point of sale, manage funds through a native Bitcoin wallet, and automatically convert a portion of daily transactions into BTC. The system runs on the Bitcoin Lightning Network, providing instant, low-cost settlements that remove the friction of on-chain transactions.

The launch introduces three core capabilities: Bitcoin Payments, Bitcoin Conversions, and an integrated Bitcoin Wallet accessible through the Square dashboard. Merchants can choose to keep Bitcoin on their balance sheet or instantly convert it to dollars, shielding their business from price swings. Square is waiving all processing fees for Bitcoin payments throughout the first year, after which a 1 percent fee will apply starting January 1, 2027. The rollout, currently limited to U.S. merchants outside New York State due to licensing restrictions, follows a limited beta that began in July 2025 and is expected to expand to all eligible merchants by 2026.

Square executives positioned the move as a natural extension of Block’s long-term Bitcoin strategy, which already spans Cash App’s BTC trading services, Bitkey’s self-custody wallet, and Spiral’s open-source Bitcoin projects. Miles Suter, Block’s Head of Bitcoin Product, described the initiative as “making bitcoin payments as seamless as card payments while giving small businesses access to financial management tools that, until now, have been exclusive to the largest corporations.” The company highlighted that merchants will have the flexibility to convert up to 50 percent of their daily card sales into Bitcoin automatically, a feature that has been quietly tested since 2024 and has already accumulated 142 BTC among early adopters.

Square’s broader goal is to give small businesses the same financial agility as large enterprises while reducing dependence on card processors and their high transaction fees. Local merchants who participated in the pilot reported tangible benefits. “By using Bitcoin Conversions in beta, we’ve built a strong financial reserve for Pink Owl Coffee over the past two years,” said owner Joe Carlo. “Now, with bitcoin payments, we’re able to serve our customers in more ways while boosting bitcoin education and more actively participating in the bitcoin economy.”

The new payments tool builds on the surge in crypto adoption among U.S. businesses, a market Block projects to grow 82 percent between 2024 and 2026. With nearly four million Square sellers across the country, the company is positioning itself as a bridge between traditional retail infrastructure and the digital-asset economy. Lightning Network integration allows payments to settle within seconds, while Square’s backend automatically handles conversions and exchange-rate updates, removing the technical barriers that previously limited merchant participation in crypto.

Following the announcement, Block’s stock climbed to its highest level in eight months, reflecting investor optimism that the integration could expand Square’s market share in payments and further validate Bitcoin as a medium of exchange. The initiative also aligns with Jack Dorsey’s long-held vision of Bitcoin as “everyday money” rather than a speculative asset—a belief increasingly reflected in the company’s product roadmap.

Square cautioned that availability could vary by state and that Bitcoin’s price volatility may influence transaction values. Even so, the launch underscores how one of the world’s most recognized payment brands is weaving Bitcoin directly into the retail fabric, turning what was once an experiment in digital currency into a feature available on checkout counters across Main Street.

This article has been refined and enhanced by ChatGPT.