Square has begun rolling out its Bitcoin payments system for U.S. merchants, taking a decisive step from planning to execution. The new service lets sellers accept BTC directly at the point of sale with zero processing fees through 2026. Fees will rise to 1% in 2027. While the feature will soon reach most U.S. states, New York remains excluded because of the state’s strict BitLicense regime.
From pilot to public rollout
The Square Bitcoin rollout follows months of phased testing that began in July 2025. After announcing its roadmap in May, Block Inc. quietly onboarded select small-business merchants to trial Lightning-based transactions. By the third quarter, those pilots had already processed about 142 BTC through the platform’s conversion tools, prompting the company to open access nationwide ahead of the formal Bitcoin Payments launch on November 10.
What merchants get
Merchants can now accept Bitcoin payments via Square’s integrated POS and wallet, which handles receiving, holding, or automatically converting funds. A built-in Square Bitcoin wallet enables sellers to buy, sell, or withdraw BTC, while an auto-conversion feature allows them to direct up to 50% of their daily card sales into Bitcoin. Transactions run over the Lightning Network, enabling faster and cheaper settlement than traditional blockchain transfers.
Strategic timing
By activating Square Bitcoin payments during a period of revived crypto interest, Block is positioning itself to capture merchants before rivals do. Many small businesses still hesitate to test digital-asset tools. The company hopes to lower these adoption barriers with the fee-free window. The rollout arrives alongside Square’s new AI voice-ordering and Square AI Insights suite, combining payments and automation into one merchant ecosystem.
Regulatory friction
The New York exclusion highlights the uneven crypto landscape across the U.S. Block is licensed in most states but continues to sidestep New York’s high-cost compliance rules. Analysts note that the carve-out is pragmatic rather than political: by skipping a jurisdiction with tougher demands, Square can accelerate expansion elsewhere while keeping options open for later approval.
Competitive landscape
The timing also signals a new competitive front in merchant payments. PayPal, which began rolling out crypto payments for merchants earlier this year through its PYUSD stablecoin, has positioned itself as the bridge between digital assets and fiat commerce. Shopify and Coinbase Commerce continue to rely on plug-ins or third-party processors for crypto checkout. Square Bitcoin, by contrast, integrates BTC acceptance directly into its POS and wallet infrastructure, using the Lightning Network for instant settlement. Analysts see the fee-free Bitcoin payments model as a short-term margin play but a long-term bid to build loyalty across Block’s broader merchant network.
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Block plans to expand the rollout to all eligible U.S. sellers by mid-2026, followed by international markets. Future updates are expected to include advanced BTC accounting features and deeper AI integrations. For Jack Dorsey, who has long described his Bitcoin mission as making BTC “the currency of the Internet,” this marks a tangible milestone: Square is not just talking about crypto — it’s operationalizing it on Main Street.
Readers’ frequently asked questions
When will Square Bitcoin payments be available to merchants?
According to Block’s October 8 2025 press release, Bitcoin Payments will open to eligible U.S. sellers on November 10 2025. The related Conversions feature, which lets merchants automatically convert a portion of daily sales into BTC, is already live.
Why is New York excluded from the rollout?
New York State requires a special BitLicense for digital-asset services. Square has not yet obtained this license, so the company is launching Bitcoin Payments in other U.S. jurisdictions first and may apply later once the licensing process is finalized.
How do fees work for Square Bitcoin transactions?
Square is offering a 0% processing-fee promotion through 2026 for merchants using Bitcoin Payments. Beginning January 1 2027, standard transactions will carry a 1% processing fee, still below typical credit-card interchange rates.
What’s in it for you? Action items you might want to consider
Prepare your Square account for Bitcoin payments
Eligible U.S. sellers can begin enabling the Conversions feature now and get ready for Bitcoin Payments ahead of the November 10 rollout. Make sure your Square dashboard and KYC details are up to date.
Evaluate how Bitcoin acceptance fits your business
With 0% fees through 2026, merchants can test crypto transactions at no additional cost. Consider whether accepting BTC or converting it to USD aligns better with your cash-flow and tax strategy.
Watch regulatory developments in your state
If you operate in New York or another restricted jurisdiction, follow updates on BitLicense approvals and Square’s expansion timeline. Additional states could be added as compliance frameworks evolve.
