Square, the payments processor owned by Jack Dorsey’s Block Inc., launched a feature enabling local businesses to accept Bitcoin at the point of sale and hold the digital asset in an integrated wallet, helping advance Bitcoin’s use as a medium of exchange.
Announced on Wednesday, the new Square Bitcoin offering allows merchants to accept Bitcoin (BTC) payments and automatically convert a portion of their sales into BTC. Square is waiving processing fees through 2026, with a 1% transaction fee set to take effect on Jan. 1, 2027.
Merchants can store their Bitcoin in a dedicated wallet accessible through Square’s existing dashboard, where they can also buy, sell or withdraw the asset. The service is available only to US sellers, excluding New York State, and is not open to international merchants.
The rollout could mark a significant step toward broader crypto adoption, as more than 4 million merchants use Square’s payments platform, according to company data.
Square’s embrace of Bitcoin isn’t surprising. The company had previously announced plans to roll out the service by 2026, and the move aligns with Block Inc.’s broader crypto strategy and the vision of CEO Jack Dorsey, a longtime Bitcoin advocate.
Dorsey previously integrated Bitcoin trading and payments into Cash App, Block’s peer-to-peer payments service, and has spearheaded efforts to develop an open-source Bitcoin mining system to reduce costs in the energy-intensive mining sector.
Source: StarPlatinumBlock Inc. currently holds 8,692 BTC on its balance sheet, ranking it as the 13th-largest public Bitcoin holder worldwide, 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 in payments is returning to the spotlight, driven by a more favorable regulatory environment in the United States and growing recognition of digital assets as a legitimate asset class.
Square cited research from eMarketer indicating that US crypto payment usage is projected to grow by 82% between 2024 and 2026, reflecting renewed momentum in the sector.
Source: CointelegraphA recent YouGov survey found that consumers in the US and the United Kingdom increasingly view payments as a leading use case for cryptocurrency. The study also noted that advances in artificial intelligence could accelerate adoption, as emerging AI tools integrate financial and transactional capabilities.
This aligns with a broader trend in which AI agents are expected to accept and initiate cryptocurrency transactions, particularly using stablecoins. Google’s newly announced Agent Payments Protocol aims to facilitate this shift, positioning crypto as a key component of the AI-driven economy.
Meanwhile, payment giant PayPal is expanding its peer-to-peer crypto offerings, allowing 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
Source: https://cointelegraph.com/news/square-bitcoin-payments-merchants-crypto?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
