Compass Coffee Becomes First Retailer To Accept Bitcoin Payments Via Square Terminal

A coffee shop in Washington, D.C. has become the first merchant globally to accept Bitcoin via Square’s point-of-sale terminal.

Compass Coffee, which has 27 locations, invited lawmakers and fintech leaders to see the technology in action, and hosted a demonstration during the DC Fintech Week.

During the demonstration, customers were able to purchase coffee using BTC over the Lightning Network through a standard Square register. This is the same point-of-sale device that is used by millions of small businesses nationwide. 

Compass Coffee said on X that the new payments terminal from Square was tested “on a huge range of wallets,” and they “all worked seamlessly.” 

“Cannot wait to see this come to Square devices worldwide soon,” the coffee shop wrote. 

Compass Coffee, while the first to accept BTC payments via the Square terminal, is not the first merchant to accept crypto. Steak ‘n Shake started accepting Bitcoin payments at all of its US locations back in May.

Square To Launch Tools To Make Bitcoin Usable For Everyday Business

The recent demonstration follows the launch of Square’s Square Bitcoin offering, which will introduce a variety of tools that are designed to make Bitcoin usable for everyday businesses. This could see BTC become a major payment option in companies ranging from coffee shops to local retailers. 

The platform will let merchants and small businesses accept payments in BTC, automatically convert a portion of their sales into Bitcoin, as well as manage their holdings in a built-in Bitcoin wallet. This functionality will all be integrated into the same dashboard that these businesses already use for point-of-sale and banking.

The rollout of Square Bitcoin will begin on Nov. 10. The company also said that there will be no processing fees for Bitcoin payments through the first year, in an effort to accelerate adoption.

Square said its mission is to make using Bitcoin “as seamless as card payments.” 

The new platform will enable merchants to accept payments at lower costs, while transactions on the Bitcoin-terminal will also settle faster than those on traditional card networks.

Jack Dorsey Calls For Tax Exemptions On Small Bitcoin Transactions

As the rollout of Square Bitcoin approaches, Square’s owner Jack Dorsey has urged the introduction of a de minimis tax exemption on small Bitcoin transactions, which would help make BTC more suitable for everyday transactions.

“We want Bitcoin to be everyday money ASAP,” Dorsey said last week.

Under current US tax laws, all Bitcoin transactions are subject to capital gains tax. This means that the seller will have to pay tax if the price of BTC rises above the initial purchase price.

Wyoming Senator Cynthia Lummis introduced a de minimis tax provision as part of a standalone crypto tax bill in July. The proposed bill aimed to exempt transactions of $300 or lower from capital gains tax with an annual exemption cap of $5,000.

The proposed bill failed to advance, but in response to Dorsey’s X post she said she is still “working on it.”