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Square, a subsidiary of Jack Dorsey’s Block Inc., has launched its zero fee Bitcoin payment program, allowing more than four million U.S. merchants to accept, convert, and manage Bitcoin directly within their existing Square systems. The initiative marks a pivotal step toward integrating digital assets into mainstream payment infrastructure and signals a deepening of Block’s long-term Bitcoin vision.
The program, officially named Square Bitcoin, is designed to streamline Bitcoin transactions for businesses of all sizes. Starting November 10, 2025, merchants can process Bitcoin payments, convert a portion of their daily revenue into BTC, and hold it securely which is all through their Square Dashboard.
This launch marks the first major rollout of a zero fee Bitcoin payment program in the U.S., removing transaction costs for the first year to encourage adoption.
“Bitcoin is no longer a niche investment as it’s becoming a daily settlement tool,” said Miles Suter, Head of Bitcoin Product at Block. “Our zero fee Bitcoin payment program makes crypto transactions as seamless and accessible as card payments.”
The company said its mission is to give merchants more control over how they earn, save, and spend using digital assets, aligning with Block CEO Jack Dorsey’s long-standing vision of a Bitcoin-powered economy.
Under the zero fee Bitcoin payment program, merchants can:
Square said the system integrates with the Lightning Network, ensuring faster settlement and lower transaction times than traditional card payments.
Pilot testing of the zero fee Bitcoin payment program began in mid-2024, during which participating merchants accumulated 142 BTC through automated conversions. The company confirmed the program will be available nationwide, except in New York, due to state-level licensing restrictions.
“We want to make Bitcoin acceptance as simple as tapping a card,” Suter added. “Our zero fee Bitcoin payment program gives sellers the freedom to engage with the next phase of digital commerce.”
According to eMarketer, the number of U.S. crypto-payment users is expected to grow 82% between 2024 and 2026, driven by merchant tools that simplify compliance and conversion.
Square’s entry into the zero fee Bitcoin payment program space intensifies competition among fintech giants. PayPal has been expanding its PYUSD stablecoin program, while Stripe and Visa continue experimenting with blockchain-based settlement systems.
Analysts believe Square’s move could push competitors to expand beyond stablecoins and embrace direct Bitcoin transactions.
Square’s zero fee Bitcoin payment program puts real pressure on incumbents, said Angela Wei, Senior Payments Analyst at FinTech Futures. By eliminating fees and offering native BTC support, Block is re-establishing Bitcoin as the backbone of decentralized payments.
However, regulators are paying close attention. The Consumer Financial Protection Bureau (CFPB) and FinCEN have flagged Bitcoin payments as an emerging area of oversight, focusing on AML and KYC compliance.
Square confirmed that its zero fee Bitcoin payment program is fully compliant with federal financial regulations, integrating identity verification, transaction monitoring, and tax reporting features into the platform.
Industry observers say the zero fee Bitcoin payment program could accelerate Bitcoin’s evolution from an investment asset to a widely accepted settlement currency. For small and medium-sized businesses, the program offers a way to hedge against inflation, reduce processing costs, and diversify payment methods.
The timing is critical. With Bitcoin’s market cap hovering near $1.2 trillion and increasing institutional acceptance, simplified retail infrastructure could be a catalyst for broader adoption.
Merchant-facing products like Square’s zero fee Bitcoin payment program are essential bridges between crypto and traditional finance, said Lucas Nwoko, blockchain policy researcher at the London School of Economics. It’s not just about payment as it’s about access and participation in a decentralized economy.
The move also strengthens Block’s ecosystem, which already includes Cash App (for retail Bitcoin trading) and Spiral, its open-source Bitcoin development arm. By connecting these verticals, Block aims to dominate both the merchant and consumer sides of Bitcoin commerce.
Shares of Block Inc. (NYSE: SQ) closed 2.64% higher on the day at $81.11, reflecting investor optimism following the announcement of the zero fee Bitcoin payment program. Despite being down 4.5% year-to-date, analysts say the initiative could drive renewed growth as transaction volume and Bitcoin adoption rise.
Earlier this year, Block shares dipped to around $46, before steadily rebounding on renewed optimism in crypto-related fintech innovation.
With competitors racing to catch up, and regulators watching closely, Square’s zero fee Bitcoin payment program may define the next chapter of Bitcoin’s integration into mainstream commerce.
