Square Makes Bitcoin payments free for eligible U.S. merchants through the end of 2026, putting the cryptocurrency payment option inside a checkout system businesses already use. The rollout, completed Tuesday (Nov. 10), lets participating sellers accept Bitcoin through the Lightning Network without holding cryptocurrency themselves.
Square will begin charging a 1% processing fee on Jan. 1, 2027. That gives merchants a temporary period to try the payment option before deciding whether its convenience is worth the cost.
Square Makes Bitcoin Easier to Offer at Checkout
Square is adding Bitcoin acceptance to its existing point-of-sale ecosystem rather than asking merchants to adopt a separate cryptocurrency provider. Businesses can make the option available through software they already use, while automatic conversion into dollars means they do not need to keep Bitcoin on hand.
The arrangement addresses several obstacles that have complicated merchant acceptance. PYMNTS reported the rollout and described unfamiliar wallet infrastructure, price volatility, accounting complications and limited consumer demand as barriers. Square’s setup removes the need for merchants to establish separate cryptocurrency relationships and reduces their exposure to Bitcoin price movements through dollar conversion.
Square also controls parts of the merchant experience beyond checkout, including onboarding, transaction reporting and settlement. That distribution gives the company a way to introduce another payment method through an existing business relationship. The source says Square’s parent, Block, also operates Cash App, which supports Bitcoin transactions.
Those features establish availability, not usage. More than 4 million businesses in Square’s merchant ecosystem represent potential distribution, not a count of merchants accepting Bitcoin or completed Bitcoin transactions. New York businesses are among those excluded by published eligibility restrictions, making the addressable market narrower than the headline network figure.
Free Processing Puts Merchant Demand to a Test
Whether customers choose Bitcoin remains a separate question. Card payments offer rewards, credit access, fraud protections and familiar dispute processes, which can appeal to consumers even when merchants face higher acceptance costs. The source also describes consumer education as a challenge: a June PYMNTS Intelligence report found that 70% of credit union members were uncertain whether their institution supports stablecoin services.
Another July PYMNTS Intelligence report found monthly crypto card spending grew roughly 15-fold between early 2023 and late 2025, reaching an annualized rate of approximately $18 billion. That finding concerns crypto card spending broadly; it does not establish how many Square customers will pay merchants with Bitcoin.
Square’s offer differs from the PNC Bank and Coinbase pilot described in the source. Their pilot allows eligible corporate clients to receive USDC payments automatically converted into dollars. Both approaches place a digital currency payment option within existing commerce or banking relationships, while leaving businesses with dollars.
Merchants Face a Fee Decision in 2027
The comparison with other business-focused blockchain efforts is relevant because companies are judging these tools by what they do for operations. Enterprise blockchain solutions have also been framed around practical business needs. And stablecoin infrastructure for banks shows how financial firms are exploring digital asset settlement.
Square’s no-fee period gives merchants time to test Bitcoin acceptance before the stated fee begins. The source does not report transaction volumes or merchant adoption after the rollout, so the promotion’s effect remains unknown. Beginning Jan. 1, 2027, the 1% processing fee will put a price on the service for eligible businesses that continue using it.
The test is whether consumers use Bitcoin when merchants can offer it through familiar checkout software, and whether businesses keep the option once fees apply. Square has expanded access; merchant and customer behavior will determine whether that access becomes routine payment activity.
For readers following the policy side of digital assets, Canada’s crypto rule changes cover a separate example of institutions adapting to cryptocurrency. Square’s rollout centers on checkout access and the decision merchants will face when its free period ends.
Frequently asked questions
Which merchants can accept Bitcoin through Square?
The capability is available to Square’s eligible U.S. merchant network. The source says not every merchant is eligible, and New York businesses are among those excluded.
Do Square merchants have to hold Bitcoin?
No. The source says businesses can receive Bitcoin payments through the Lightning Network without holding cryptocurrency, with automatic conversion into dollars.
When will Square begin charging a Bitcoin processing fee?
Square is waiving processing fees through the end of 2026. A 1% processing fee is scheduled to begin Jan. 1, 2027.
Does Square's rollout show that customers are using Bitcoin to pay?
No transaction volume or merchant adoption figures are reported in the source. The rollout establishes availability, while actual customer use remains unreported.
How many businesses are in Square's merchant ecosystem?
The source says Square’s merchant ecosystem numbers more than 4 million businesses. It does not say every business is eligible or accepts Bitcoin.
Which merchants can accept Bitcoin through Square?
The capability is available to Square’s eligible U.S. merchant network. The source says not every merchant is eligible, and New York businesses are among those excluded.
Do Square merchants have to hold Bitcoin?
No. The source says businesses can receive Bitcoin payments through the Lightning Network without holding cryptocurrency, with automatic conversion into dollars.
When will Square begin charging a Bitcoin processing fee?
Square is waiving processing fees through the end of 2026. A 1% processing fee is scheduled to begin Jan. 1, 2027.
Does Square's rollout show that customers are using Bitcoin to pay?
No transaction volume or merchant adoption figures are reported in the source. The rollout establishes availability, while actual customer use remains unreported.
How many businesses are in Square's merchant ecosystem?
The source says Square’s merchant ecosystem numbers more than 4 million businesses. It does not say every business is eligible or accepts Bitcoin.
