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Social media platform X's founder, Jack Dorsey’s Block-owned sales platform Square, has begun incorporating merchants into its system to accept bitcoin payments, marking the first phase of a broader program confirmed by Dorsey on Tuesday in a post on X.
Bitcoin transactions made through Square terminals will initially be tested with a limited number of merchants, according to the company. The program is expected to reach a wider audience by 2026..
Square's new system uses Bitcoin's Lightning Network infrastructure for faster and lower-cost transactions. Sellers are given the option to store the bitcoin they receive as payment or convert it to fiat currency instantly. The feature, which was first unveiled at the bitcoin 2025 conference in Las Vegas, is now available to a limited number of early adopters.
The new integration was designed with both small businesses and large retailers in mind. According to Block, the system aims to reduce transaction fees, which typically range from 1.5% to 3.5% for credit card transactions. Payments made with bitcoin can be completed in minutes and are subject to lower transaction costs.
The conference is part of Block's broader bitcoin-focused strategy, as the company's strategy includes an 8,584 bitcoin treasury, the development of its custody wallet, Bitkey, and investments in bitcoin mining infrastructure. In addition, Block continues to reinvest 10% of its gross profit from bitcoin into monthly purchases of the cryptocurrency.
Block continues its efforts to implement updated regulations for the wider acceptance of bitcoin and digital assets. The company supports the establishment of a federal licensing system for digital assets and the implementation of tax breaks for small Bitcoin payments. These proposals gained significant momentum with the U.S. House of Representatives' approval of the Digital Asset Market Clarity Act on July 17.
While bitcoin payments are already accepted by platforms such as PayPal, Coinbase, and BitPay, Square has entered a competitive market. Square's non-custodial payment model gives users full control over their bitcoins and aligns with decentralized finance principles.
However, challenges persist in the adoption process. Some customers prefer traditional payment methods, and many merchants are not yet accustomed to bitcoin payments. Block offers solutions such as automatic conversion and simplified setup to facilitate this transition.
Additionally, Block is expected to begin trading on the S&P 500 index on the same day as its launch.
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