From Swipe to Zap: Why Square’s 4M Shops Just Got A 0% Bitcoin Button

Block has launched Bitcoin payment acceptance via the Lightning Network for its four million Square merchants, allowing customers to pay using Cash App or any Lightning-enabled wallet. Sellers can keep the Bitcoin or have it instantly converted to USD through Square's infrastructure. The launch features 0% processing fees until 2027, followed by a flat 1% fee, which is structurally cheaper than typical card payment costs (1.5% to 3%) and eliminates chargebacks. While the merchant-facing fee is zero, Block profits from foreign exchange and crypto spreads on conversions. This move significantly increases the potential endpoints on the Lightning Network, routing substantial volume through Block's large public node, which raises centralization concerns but also increases efficiency. The system creates a closed liquidity loop involving Cash App purchases and merchant settlements, potentially tightening retail Bitcoin spreads. Adoption hinges on merchant promotion and regulatory clarity regarding capital gains tax on small transactions.

(Source：CryptoSlate)