Square, the payments processor owned by Jack Dorsey’s Block Inc., has introduced a feature that allows local businesses to accept Bitcoin at the point of sale and store the digital currency in an integrated wallet — a development that could foster Bitcoin’s use as a means of exchange.
Announced on Wednesday, the new Square Bitcoin feature enables merchants to accept Bitcoin (BTC) payments and automatically convert part of their sales into BTC. Square will not charge processing fees until 2026, with a 1% transaction fee scheduled to start on Jan. 1, 2027.
Merchants can manage their Bitcoin in a dedicated wallet accessible via Square’s existing dashboard, where they can also buy, sell, or withdraw the asset. This service is currently available only to US sellers, excluding New York State, and is not accessible to international merchants.
The launch could represent a significant advancement toward wider crypto adoption, as over 4 million merchants utilize Square’s payment platform, according to company statistics.
Square’s acceptance of Bitcoin is expected. The company previously stated its intention to roll out the service by 2026, aligning with Block Inc.’s larger crypto strategy and the vision of CEO Jack Dorsey, a long-time Bitcoin supporter.
Dorsey has previously integrated Bitcoin trading and payments into Cash App, Block’s peer-to-peer payment service, and has led initiatives to create an open-source Bitcoin mining system to lower costs in the energy-intensive mining industry.
Block Inc. currently holds 8,692 BTC on its balance sheet, making it the 13th-largest public Bitcoin holder globally, according to industry data.
Related: Jack Dorsey’s Block to join S&P 500, stock surges 9% after-hours
Crypto payments back in focus
The use of cryptocurrency for payments is regaining attention, propelled by a more favorable regulatory climate in the United States and increased acceptance of digital assets as a legitimate asset class.
Square referenced research from eMarketer, which indicates that US crypto payment usage is anticipated to increase by 82% between 2024 and 2026, highlighting renewed enthusiasm in the sector.
A recent YouGov survey indicated that consumers in the US and the UK increasingly regard payments as a primary use case for cryptocurrency. Additionally, the study suggested that advancements in artificial intelligence could hasten adoption, as new AI tools integrate financial and transactional features.
This aligns with a broader trend wherein AI agents are expected to facilitate and initiate cryptocurrency transactions, particularly with stablecoins. Google’s newly announced Agent Payments Protocol aims to support this transition, positioning crypto as a vital component of the AI-driven economy.
Meanwhile, payments giant PayPal is broadening its peer-to-peer crypto services, enabling users to send and receive payments using Bitcoin, Ether (ETH), and its US dollar-pegged stablecoin PYUSD (PYUSD).
Related: Crypto payments abroad may be legal despite domestic bans in several countries
