Compass Coffee, a coffee shop in Washington, D.C., successfully processed Bitcoin payments through Square's point-of-sale terminal. This is considered a symbolic example of cryptocurrency's potential as a real-world payment method.
This payment system is based on the Lightning Network, a payment system currently being developed by Square's parent company, Block, Inc. During testing, Bitcoin payments using multiple different wallets were instantly approved, and the payment amounts were converted to fiat currency (USD) in real time.
Square plans to gradually introduce Bitcoin payment capabilities at its POS terminals starting in the second half of 2025, expanding to all eligible merchants by 2026. This feature utilizes the Lightning Network, a blockchain scaling technology, to address transaction delays and offer lower fees compared to credit card payments.
Square also announced the launch of its "Bitcoin Conversions" feature in 2024, which allows merchants to automatically convert a portion of their daily sales into Bitcoin. Starting November 10th, sellers will be able to convert up to 50% of their sales into Bitcoin, with transaction fees waived for the first year.
“It’s designed so merchants can choose to either accept Bitcoin directly or have it automatically converted into dollars immediately,” a Square representative said, adding that “this will be the first step toward integrating Bitcoin into real-world payment infrastructure.”
This pilot operation is a prime example of Bitcoin's potential for real-world payments, and is expected to serve as a catalyst for global fintech companies to adopt cryptocurrency payments in the future.
