Square’s new Bitcoin service lets US merchants accept BTC at checkout, hold it in a built-in wallet and get zero fees on transactions.
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Square, the payments processor owned by Jack Dorsey’s Block Inc., has launched a new feature enabling local businesses to accept Bitcoin at the point of sale and hold the digital asset in an integrated wallet — a move that could help advance Bitcoin’s use as a medium of exchange.
on Wednesday, the new Square Bitcoin offering allows merchants to accept Bitcoin () 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 , and the move aligns with Block Inc.’s broader crypto strategy and the , a longtime Bitcoin advocate.
Dorsey previously integrated Bitcoin trading and payments into , Block’s peer-to-peer payments service, and has spearheaded efforts to develop an to reduce costs in the energy-intensive mining sector.
Block Inc. currently holds 8,692 BTC on its balance sheet, ranking it as the 13th-largest public Bitcoin holder worldwide, according to industry .
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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.
A 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 aims to facilitate this shift, positioning crypto as a key component of the AI-driven economy.
Meanwhile, payment giant PayPal is , allowing users to send and receive payments using Bitcoin, Ether (), and its US dollar-pegged stablecoin PYUSD ().
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