Key Highlights
- Millions of qualifying U.S. small business owners now have Bitcoin payment capability through Square
- Merchants receive U.S. dollars immediately, eliminating cryptocurrency volatility concerns
- No processing fees charged until 2026, with automatic activation requiring no merchant action
- Complete deployment across Square’s merchant network expected by November 10
- Former PayPal executive David Marcus compared the development to a foundational internet protocol breakthrough
Jack Dorsey’s payment processing company Square has initiated an automatic activation of Bitcoin payment capabilities across its extensive U.S. small business network. The deployment commenced Monday and will progressively reach all eligible merchants throughout the next several weeks.
Connecting the ecosystem with @Square has been the dream since we launched bitcoin in @CashApp in 2018
Starting today, all merchants can now seamlessly stack bitcoin behind the scenes from their daily sales
Bitcoin Payments Acceptance will be live for everyone on November 10 pic.twitter.com/mTqbu8wfGG
— Miles 🌞 (@milessuter) October 8, 2025
Business owners need take no action to enable this functionality. The Bitcoin acceptance feature has been integrated seamlessly into current Square payment infrastructure.
When customers complete transactions using Bitcoin, merchants automatically receive payment in U.S. dollars. This eliminates any exposure to cryptocurrency market fluctuations and removes the need for businesses to manage digital assets.
Square has eliminated processing fees entirely through 2026. Funds settle almost instantaneously, and merchants face no additional registration procedures.
According to Miles Suter, who leads Bitcoin product development at Block, the initiative aims to facilitate “millions of businesses to accept Bitcoin.” He emphasized this represents “how Bitcoin as everyday money begins.”
Jack Dorsey acknowledged the launch with a succinct post on X, writing simply: “today.”
The service is now accessible to verified U.S. sellers meeting specific criteria. New York-based businesses remain temporarily excluded. Complete rollout encompassing all Square merchants should conclude by November 10.
Merchants can alternatively choose to retain, or “stack,” a percentage of their daily Bitcoin revenue instead of converting all proceeds to traditional currency.
Technical Implementation of Bitcoin Transactions
Square manages the currency conversion automatically behind the scenes. Customers transmit payment in Bitcoin, which Square immediately converts to dollars before transferring funds to the merchant. Business owners never directly handle cryptocurrency.
This methodology eliminates the two primary obstacles that have historically prevented small businesses from accepting cryptocurrency: market volatility concerns and the technical challenges of managing digital currencies.
Block currently maintains 8,883 Bitcoin in its corporate treasury, positioning it as the 14th largest publicly traded company by Bitcoin ownership, based on BitcoinTreasuries.net tracking data.
Market Response
David Marcus, Lightspark’s CEO and former PayPal President, characterized this deployment as a possible “TCP/IP moment” for financial systems. His comparison referenced the foundational standardization that enabled internet protocol adoption.
Marcus suggested Bitcoin might establish itself as a universal infrastructure for transferring value across users and platforms, mirroring how TCP/IP became the universal standard enabling data transmission across global networks.
This development arrives as PayPal has independently launched its dollar-pegged stablecoin, PYUSD, reaching users in 70 international markets. While Dorsey has previously voiced reservations about stablecoins, he indicated Block would accommodate them based on consumer preferences.
Beyond payment processing, Bitcoin continues expanding into credit markets. Coinbase, Kraken, and Nexo have each introduced Bitcoin-collateralized lending services in recent quarters. U.S. mortgage provider Rate now permits borrowers to leverage verified cryptocurrency assets for underwriting qualification without liquidating their holdings.
Square’s merchant distribution currently comprises 78% U.S.-based businesses and 22% international operations, per the company’s most recent investor documentation.
