Jack Dorsey’s Square has just opened up 4M merchants to Bitcoin
News Summary
Payment processor Square has launched its Bitcoin payment feature, enabling merchants to accept Bitcoin at checkout via its point-of-sale system. Jack Dorsey, co-founder of Block (Square’s parent company), stated that the new feature supports Bitcoin-to-Bitcoin, Bitcoin-to-fiat, fiat-to-Bitcoin, and fiat-to-fiat payments. Currently, Bitcoin payments are available only for in-person and point-of-sale terminal purchases, with online and invoicing options “in the works” and updates expected soon. Square has committed to waiving fees until 2027, after which a 1% fee will apply—significantly lower than typical credit card processing fees of 1.5% to 4%. Square boasts over four million merchants across eight countries, including the United States, France, the United Kingdom, and Japan. Early users have already reported successfully utilizing the feature, with industry figures widely hailing the move as significantly lowering the barrier for merchants to accept Bitcoin. Dorsey also shared news of a global map showing Bitcoin-accepting merchants and encouraged sellers to adopt Bitcoin to “better survive dollar debasement.”
Background
Square, a payment services provider under Block Inc., has long been committed to integrating Bitcoin into its product ecosystem. Co-founder Jack Dorsey is a staunch Bitcoin maximalist, and his other product, Cash App, has supported Bitcoin transactions for years. As early as October 2025, Square had previewed its Bitcoin payment feature and launched a conversion option allowing sellers to convert a percentage of their daily card sales into Bitcoin, as part of its “Square Bitcoin” payment and wallet solution. The company had previously stated it would roll out the full service by 2026, and this earlier deployment signifies an acceleration of its cryptocurrency strategy.
In-Depth AI Insights
What does Square's move signify for Bitcoin's real-world adoption, and what are the potential macroeconomic drivers behind it? - This marks a pivotal step in Bitcoin's transition from a speculative asset to a practical payment tool, especially within Square's vast network of 4 million merchants. - It significantly lowers the technical and operational barriers for merchants to accept Bitcoin, allowing seamless integration into existing POS systems. - The zero-fee period and low-rate strategy aim to rapidly expand market share, challenging the profitability models of traditional payment networks. - Jack Dorsey's mention of “surviving dollar debasement” hints at concerns over potential inflationary pressures and monetary policy under the current Trump administration, positioning Bitcoin as a store of value and hedging instrument. What challenges and opportunities will this Square innovation present for traditional payment giants and financial regulators? - Challenges: Traditional payment giants like Visa and Mastercard may face increasing competitive pressure from Bitcoin payments, particularly regarding fees. Square's low rates could force them to re-evaluate their fee structures and innovation strategies. Furthermore, increased Bitcoin payment adoption could erode traditional banks' central role in payment settlement. - Opportunities: Traditional financial institutions might seek partnerships with crypto payment solution providers or develop their own services to avoid market obsolescence. Regulators, meanwhile, face the challenge of balancing innovation promotion with risk mitigation (e.g., money laundering, consumer protection), likely accelerating the introduction of clearer digital asset payment regulations. Considering the policy backdrop of President Trump's administration in 2025, how might this technological integration influence digital asset policy and market sentiment in the US and globally? - The Trump administration's stance on digital assets has been relatively open, especially in the context of emphasizing US leadership in technological innovation and countering other nations' digital currencies. Square's move could be seen as supporting American innovation in digital payments, aligning with the administration's inclination to foster free markets and reduce regulatory burdens. - However, widespread Bitcoin payment adoption could also raise concerns within the existing financial system regarding stability and national monetary sovereignty, potentially prompting the government to enhance transparency and compliance requirements for cryptocurrency transactions even while encouraging innovation. - Globally, US leadership in digital asset payments may spur other nations to accelerate the exploration and regulation of their own digital currency payment systems, or encourage more multinational corporations to follow Square's lead, further globalizing crypto payments.