Block Inc., helmed by Jack Dorsey, is pushing Bitcoin further into mainstream commerce with Square’s latest innovation: Bitcoin acceptance and storage capabilities for small businesses directly within its point-of-sale systems. This initiative seeks to enhance Bitcoin’s utility as a practical currency.
Unveiled this past Wednesday, Square’s new Bitcoin service empowers merchants to receive payments in Bitcoin (BTC) and seamlessly allocate a percentage of their revenue into BTC holdings. Square is incentivizing adoption by eliminating processing fees until the start of 2027, after which a modest 1% transaction fee will be introduced.
Business owners can conveniently manage their Bitcoin through a dedicated wallet, accessible within the familiar Square dashboard. Here, they can also buy, sell, or withdraw their cryptocurrency. Currently, this offering is exclusively available to US-based sellers, excluding those in New York State, and is not yet extended to international markets.
With over 4 million businesses utilizing Square’s payment platform, this rollout has the potential to significantly accelerate the broader acceptance of cryptocurrency.
Square’s foray into Bitcoin is a logical progression. The company had previously signaled its intention to launch this feature by 2026, aligning with Block Inc.’s comprehensive cryptocurrency strategy and the longstanding advocacy of Bitcoin by its CEO, Jack Dorsey.
Dorsey had previously integrated Bitcoin trading and payment functionalities into Cash App, Block’s popular peer-to-peer payment platform. He has also championed the development of an open-source Bitcoin mining system designed to reduce energy consumption and costs within the mining sector.
Presently, Block Inc. holds 8,692 BTC, positioning it as the 13th-largest publicly listed Bitcoin holder worldwide, according to current data.
Renewed Interest in Crypto Payments
The use of cryptocurrencies for making payments is experiencing a resurgence, fueled by a more supportive regulatory environment in the United States and increasing acceptance of digital assets as a valid investment class.
Square highlights research from eMarketer, projecting an 82% surge in crypto payment usage within the US between 2024 and 2026, signalling a revitalized momentum in the sector.
A recent survey by YouGov indicates that consumers in the US and UK are increasingly considering payments as a primary application for cryptocurrency. The study also suggests that advancements in artificial intelligence may expedite adoption, as emerging AI technologies incorporate financial and transactional capabilities.
This trend aligns with the expectation that AI agents will increasingly engage in cryptocurrency transactions, particularly utilizing stablecoins. Google’s recently announced Agent Payments Protocol aims to facilitate this transition, positioning crypto as a crucial component of the AI-driven economy.
Furthermore, payment giant PayPal is expanding its cryptocurrency offerings for peer-to-peer transactions, enabling users to send and receive payments using Bitcoin, Ether (ETH), and its US dollar-backed stablecoin PYUSD (PYUSD).