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14 hour ago
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Block’s Bitcoin Payment Option Launched for 4 Million Square Merchants

Block's Bitcoin Payment Rollout:

  • Block, led by Jack Dorsey, introduced a Bitcoin payment option for 4 million Square merchants in the US.
  • Merchants can accept Bitcoin at checkout with transactions settling over the Lightning Network for faster confirmation.
  • There are automatic conversion options allowing sellers to receive payments in fiat or hold Bitcoin.

Fees and Conversion Details:

  • No processing fees for Bitcoin payments until January 1, 2027; afterward, a 1% fee per transaction is expected.
  • Merchants may convert up to 50% of daily card sales into Bitcoin automatically.
  • The rollout excludes certain regions like New York currently due to regulatory issues.

Bitcoin Payments

Adoption Challenges:

  • Success depends on consumer demand and ease of use at checkout.
  • Highlighted benefits include no chargebacks and lower friction using Lightning Network.
  • Technical/regulatory hurdles: local rules, anti-money-laundering checks, and Lightning routing challenges for small payments.
  • Accounting and tax treatment are concerns for merchants deciding whether to keep Bitcoin or convert to fiat.

Market Impact:

  • If adopted widely, Bitcoin could become more common in everyday commerce.
  • Gradual adoption expected, with visible results after a few months.