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Block Inc., led by Jack Dorsey, has introduced a new Bitcoin payment system for retailers that use its Square point-of-sale (POS) platform. The feature allows small businesses to accept payments in Bitcoin (BTC) and convert at least part of their daily sales into BTC. Merchants may now transact in Bitcoins without incurring any fees until 2026; thereafter, a 1% fee will be applied starting from January 2027.
The service is currently available to merchants based in the US, except for New York State, due to regulatory reasons. Square also has a built-in Bitcoin wallet that allows businesses to buy, sell, hold, or withdraw BTC directly from their Square dashboards. The purpose of this release is to open up crypto transactions to small businesses and to make Bitcoin a more viable form of payment.
According to Miles Suter, Head of Bitcoin Product at Block, the initiative aims to make Bitcoin as convenient as traditional payment options. He said Square wants to provide the small retailer with tools that allow them financial flexibility and transparency. The platform now enables businesses to convert up to 50% of their daily sales into Bitcoin, up from the previous 10% limit.
Block referred to the initiative as part of its overall mission to "simplify Bitcoin for Main Street." By incorporating the concept of Bitcoin into its day-to-day business activities, Square will help overcome some of the technical barriers that have hindered the adoption of Bitcoin in retail transactions. The company believes this may help merchants prepare for the future of digital finance.
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It marks another milestone in Jack Dorsey's efforts to increase Bitcoin's adoption. Dorsey has been among the long-term supporters of Bitcoin as a means of exchange, rather than a speculative tool. Block already possesses more than 8,600 BTC, making it one of the leading publicly traded companies with significant holdings of Bitcoin.
The Cash App by Block already offers the opportunity to trade in Bitcoin, and it features a hardware wallet, Bitkey, which allows users to store digital assets securely. Following the announcement, Block stock rose 2.6% to $81, its highest level since February.
Analysts expect the move will help to increase crypto payment adoption in the US. Data projects an 82% increase in crypto payment users by 2026. With over four million merchants on its network, Square's recent move could help push Bitcoin down the path towards becoming a mainstream payment method for retail commerce.
