Square (the payment processor owned by Block, led by Jack Dorsey) has officially activated its "Bitcoin Payments" feature for over 4 million merchants across the United States (excluding New York). This significant upgrade allows businesses to accept instant Bitcoin (BTC) payments directly at the point of sale, marking one of the most substantial steps toward integrating crypto into everyday commerce.
The core technology behind this launch is the Lightning Network, Bitcoin's Layer-2 solution, which facilitates rapid and low-cost transactions. Merchants can easily enable the feature via their Square Dashboard. When a customer pays with BTC, the terminal generates a Lightning Invoice QR Code that customers can scan with any Lightning-enabled wallet. The funds are settled to the seller almost instantly, with the merchant having the option to hold the funds in Bitcoin or automatically convert them to U.S. dollars (USD) for stability.
Key Economic Incentives for Merchants:
0% Fees: Square is offering zero processing fees on all Bitcoin transactions through the end of 2026. Starting in 2027, a flat 1% fee will apply, which is significantly lower than typical credit card processing fees, often ranging from 1.5% to 4%.
No Chargebacks: Bitcoin payments eliminate the risk of chargebacks, as blockchain transactions are final. This provides a crucial advantage for small businesses by mitigating fraud and operational costs.
Flexibility: Merchants are given flexibility to choose instant BTC-to-BTC settlement or instant BTC-to-Fiat conversion, providing the tools needed to manage currency volatility.
This rollout aligns with Block's broader vision to transform Bitcoin into an "everyday currency," moving it beyond being solely a store of value. It reinforces Jack Dorsey’s commitment to building a decentralized, peer-to-peer financial system that bypasses traditional banks and intermediaries.
Posted Using INLEO