Square Bitcoin payments are now live! 4 million merchants are now accepting Bitcoin with zero fees, including coffee shops.

Payment processor Square has launched Bitcoin payment features for merchants, allowing them to accept Bitcoin payments at checkout through their point-of-sale systems. Merchants can receive payments in Bitcoin to Bitcoin, Bitcoin to fiat, fiat to Bitcoin, or fiat to fiat. Currently, over 4 million merchants across 8 countries are covered, with zero fees until 2027, after which only a 1% fee will be charged (credit card fees typically range from 1.5% to 4%).

Comprehensive Analysis of Square’s Bitcoin Payment Features

(Source: X)

On November 10, Jack Dorsey, co-founder of Block, the parent company of Square, posted on X that with this new feature, merchants using Square can accept Bitcoin to Bitcoin, Bitcoin to fiat, fiat to Bitcoin, or fiat to fiat payments. This flexible combination means that regardless of the assets held by merchants and consumers, transactions can be completed seamlessly.

Bitcoin to Bitcoin mode is suitable when both parties are cryptocurrency holders, with no fiat conversion involved. Bitcoin to fiat allows consumers to pay with Bitcoin, while merchants receive fiat currency like USD—this is the most common scenario since most merchants still prefer to settle in fiat. Fiat to Bitcoin enables consumers to pay with credit or bank cards, with merchants receiving Bitcoin, ideal for merchants looking to accumulate Bitcoin. Fiat to fiat continues the traditional payment model.

Meanwhile, Square’s account manager Jacob Szymik stated that Bitcoin payments currently only support in-person and point-of-sale terminal transactions, but online payments and invoice payments are “in development” and will be rolled out soon. This indicates that at present, Square Bitcoin payments mainly serve physical stores, with online e-commerce and remote service providers awaiting future updates.

In October, Square introduced a conversion feature allowing merchants to convert part of their daily card sales into Bitcoin, signaling progress in its Bitcoin payment business. This feature, along with the conversion option, is part of Square’s payment and wallet solution called Square Bitcoin. The company previously stated it plans to fully launch this service by 2026, and current progress aligns with expectations.

Over 4 Million Merchants Covered and Real-World Use Cases

According to the company, over 4 million merchants in eight countries/regions—including the US, France, the UK, and Japan—are using Square. This scale makes Square’s Bitcoin payment one of the most widely covered cryptocurrency payment infrastructures to date. In comparison, crypto-focused payment provider BitPay is estimated to have tens of thousands of merchants.

Several digital X users have reported using the Bitcoin payment feature. Parker Lewis, Business Development Director at Bitcoin and fiat payment platform Zaprite, said he “saw this feature in action and used it to buy coffee at Medici, a coffee roasting shop in Texas.” He added, “For Medici, Square, and all merchants accepting Bitcoin payments via Square, today is a good day—and for the entire Bitcoin industry. Bitcoin users, please support your local Square merchants.”

Katie Ananina, CMO of tech platform CitizenX, said she was the first to pay with Bitcoin at the same coffee roasting shop. “Many of us have tried to get merchants to accept Bitcoin payments. It’s been painful for years,” she wrote in another article. “You really need the person behind the company to fully accept Bitcoin, become a Bitcoin believer, and join in. Today’s move by Square is definitely legendary, greatly lowering the barrier to entry. Awesome!”

These real-world cases show that Square Bitcoin payments have moved from theory to practice. Texas coffee shop Medici became one of the early adopters, demonstrating that small independent merchants can easily connect to the Bitcoin payment network. Katie Ananina’s comments highlight the core pain point: convincing merchants to accept Bitcoin previously required extensive education and technical support, but Square’s solution simplifies this process to a few clicks.

Fee Advantages Reshape Merchant Payment Cost Structure

She also reiterated that there will be no fees before 2027. Previously, Block stated that after the deadline, fees would start at 1%. In contrast, credit card fees typically range from 1.5% to 4%. This fee structure gives Square Bitcoin payments a significant competitive edge.

For small merchants, credit card processing fees are a substantial expense. A coffee shop with $1 million in annual revenue, processing all transactions via credit cards at an average fee of 2.5%, would pay $25,000 annually in fees. Switching to Square Bitcoin payments, which are free before 2027 and only 1% afterward, would save about $15,000 annually—a 60% reduction.

Fee Comparison

Square Bitcoin Payment (before 2027): 0%

Square Bitcoin Payment (after 2027): 1%

Average credit card fee: 2.5%

High-end credit card fee: up to 4%

Jack Dorsey added, “Convincing your local Square merchants to enable Bitcoin payments means zero transaction fees. And persuading them to stick with Bitcoin helps them better hedge against the dollar’s devaluation.” This statement reveals Dorsey’s long-term belief in Bitcoin as a store of value and hints that Square Bitcoin payments are not just a payment tool but also a strategy for merchants to combat inflation.

The October launch of the conversion feature further supports this narrative. Merchants can choose to automatically convert a portion of their daily card sales into Bitcoin, similar to a dollar-cost averaging strategy. For example, a restaurant earning $1,000 daily could set a 10% conversion rate, automatically accumulating $100 worth of Bitcoin daily. If Bitcoin’s price rises, this asset appreciates, providing merchants with additional income.

Real-Time Map and Payment Ecosystem Expansion

Dorsey also shared a post from the product lead of Block’s peer-to-peer payment service Cash App, announcing the launch of a map showing all merchants worldwide that accept Bitcoin. This real-time map elevates Square Bitcoin payments from a simple payment tool to an ecosystem infrastructure. Users can discover nearby merchants accepting Bitcoin via the map, and merchants can attract Bitcoin users by listing themselves.

This network effect is crucial in the payments industry. When the number of merchants accepting Bitcoin reaches a critical mass, consumer adoption of Bitcoin payments will increase, further incentivizing more merchants to join. The base of over 4 million merchants provides the potential for this network effect. Even if only 5% of Square merchants enable Bitcoin payments, that still amounts to 20,000 merchants worldwide.

A YouGov survey in July found that among 1,000 respondents in the US and UK, 37% believed that payments are the main use case for cryptocurrency and AI. This data indicates that market perception of crypto payments is improving, no longer seen solely as speculative tools but as practical payment methods.