Square Launches Lightning-Powered Bitcoin Payments: Zero Fees Until 2027
Posted 29 days ago by LN+
Square, part of Block, Inc., has officially announced that its sellers can begin accepting bitcoin payments via the Lightning Network starting November 10, 2025. This rollout marks one of the most significant mainstream adoptions of Lightning to date — directly integrating bitcoin payments into Square’s point-of-sale ecosystem.
“The future of payments starts November 10. Accept bitcoin with zero processing fees until 2027 and keep more of what you earn.”— Square on X (@Square)
According to Square’s official releases page, this feature is available to U.S. sellers (excluding New York) using physical Square hardware.
How It Works
Square has made it simple for merchants to accept bitcoin without extra hardware or configuration:
Merchants enable Bitcoin Payments in their Square Dashboard or POS app.
At checkout, Square generates a QR-code Lightning invoice.
Customers scan and pay using any Lightning-enabled wallet.
Payments settle in seconds and appear in the merchant’s Square Dashboard.
Merchants can choose to keep bitcoin or convert it instantly to USD at the time of sale.
The integration leverages the Lightning Network for near-instant, low-cost bitcoin payments, bringing the speed and scalability of Lightning directly into physical retail environments.
Coffeehouse with 27 locations Compass Coffee DC is showing off Square Bitcoin Payments at DC Fintech
Fees and Timeline
Square confirmed that bitcoin payments will carry zero processing fees until 2027. After that, a 1% flat transaction fee will apply — significantly lower than traditional card-processing fees.
The rollout begins November 10, 2025, initially for physical-store sellers in the United States. Broader access and online availability are expected later as part of the phased deployment through 2026.
The first 20,000 U.S. sellers to enable Bitcoin Conversions, get $50 in BTC from Square
Availability and Limitations
U.S. sellers only at launch.
Not available to New York sellers or international merchants.
Physical locations only for now; online bitcoin payments will follow later.
Refunds: Square has not yet published details on bitcoin-payment refund mechanisms, though Lightning transactions are inherently irreversible.
Why It Matters
1. Mainstream Merchant Adoption of Lightning
By integrating Lightning directly into its POS system, Square is making bitcoin usable for everyday retail — from coffee shops to boutiques. This is the kind of adoption Lightning advocates have been waiting for: fast, seamless, and built into a trusted merchant platform.
2. Cost and Speed Advantages
Merchants can now process bitcoin payments instantly, with no processing fees for over a year, and far fewer costs thereafter. For small businesses, this reduces overhead and improves cash flow.
3. Merchant Flexibility
Square’s implementation allows merchants to accept and hold bitcoin or instantly convert it to USD, giving flexibility without exposing businesses to unwanted volatility.
4. Boost for the Lightning Ecosystem
Square’s move could significantly increase Lightning transaction volume, liquidity, and visibility. It positions Lightning as a viable, scalable payment layer — not just a niche protocol — within mainstream commerce.
The Broader Picture
This development reinforces Block Inc.’s long-standing commitment to bitcoin infrastructure. With Cash App already supporting Lightning, Square’s merchant integration closes the loop — connecting consumers and sellers in a unified Lightning-powered ecosystem.
If successful, this rollout could normalize bitcoin payments at the point of sale, encouraging more wallet adoption, better liquidity management, and higher network resilience.
What Comes Next
As the rollout progresses, key updates to watch for include:
Expansion to online sellers and international markets.
Clear guidance on refund and settlement policies.
Data on merchant uptake and real-world transaction volumes.
If adoption takes off, Square’s integration could mark a tipping point — moving Lightning from tech demonstration to a default payment option across real businesses.
Final Thoughts
Square’s decision to enable bitcoin payments with zero fees until 2027 is more than a promotional offer — it’s a statement of confidence in Lightning’s future. By bridging digital and fiat payments in one of the world’s most widely used merchant platforms, Square is turning bitcoin into a practical, everyday currency option.
For the Lightning community, this is the most consequential development since network activation: a real, tangible path for bitcoin to function as money — fast, cheap, and global.
