Block, founded by Jack Dorsey, has enabled Bitcoin payments for 4 million merchants worldwide, with the Lightning Network providing instant settlement.

In early November 2025, Jack Dorsey’s payments infrastructure company Block announced the launch of Bitcoin payment capabilities for 4 million global merchants through its Square Bitcoin platform. This allows consumers to pay with Bitcoin at checkout and settle instantly via the Lightning Network. The project offers a fee waiver policy for merchants until 2027 and enables businesses to automatically convert a portion of their daily card sales into Bitcoin, effectively providing a zero-threshold recurring Bitcoin investment mechanism and transforming traditional cash flows into crypto assets.

This initiative complements Block’s existing offerings, including the self-custody hardware wallet BitKey and Bitcoin trading features within Cash App, marking a key milestone in Bitcoin’s transition from a store of value to a “daily currency.” Dorsey also called on the U.S. government to implement tax exemptions for small Bitcoin transactions to promote widespread adoption.

Block Bitcoin Payment Integration and Technical Details

Block’s Square Bitcoin payment solution represents a technological breakthrough in mainstream Bitcoin adoption, primarily by integrating the Lightning Network into traditional point-of-sale systems to enable near-instant, low-cost Bitcoin settlements.

Technically, when a consumer opts to pay with Bitcoin, the system generates a Lightning Network invoice. The consumer completes the payment using a compatible wallet (including Block’s own BitKey or any Lightning-compatible wallet). Merchants receive settlement in fiat or Bitcoin almost immediately, eliminating the typical 10-60 minute confirmation delay associated with traditional Bitcoin transactions.

Regarding fee policies, the merchant fee waiver until 2027 provides a generous trial period. Compared to the 1.5-3.5% fees typical of credit card transactions, this policy significantly lowers the financial barrier for merchants to accept Bitcoin.

An innovative feature is “automatic conversion,” where merchants can choose to automatically convert a portion of their daily card sales into Bitcoin. This offers a hassle-free, periodic Bitcoin investment mechanism, turning traditional cash flows into crypto assets.

Miles Suter, Head of Block’s Bitcoin products, emphasized in October: “We make Bitcoin payments as seamless as card payments, providing small businesses with financial management tools previously only accessible to large enterprises.”

Use Cases and Ecosystem Synergy

Block’s Bitcoin payment strategy benefits from its unique “dual-sided” market positioning, serving both merchants (via Square) and consumers (via Cash App), creating a closed-loop payment ecosystem. A pilot at Washington, D.C.'s Compass Coffee chain demonstrated this: since October 2025, customers can pay with Bitcoin, with feedback indicating the experience is “no different from card payments.”

From an ecosystem perspective, Block’s Bitcoin product suite is highly complementary: the self-custody hardware wallet BitKey launched in 2024 offers secure storage; Cash App, with over 80 million users, allows direct Bitcoin buying and selling; and its integrated merchant map helps users find local merchants accepting Bitcoin.

Dorsey stated in the Q3 shareholder letter: “Square Bitcoin is the first fully integrated Bitcoin payment and wallet solution designed for businesses, enabling merchants to accept Bitcoin payments and automatically convert sales into Bitcoin.” This vertical integration grants Block a competitive edge in crypto payments, especially compared to competitors offering only single services like payments or custody.

Core Information on Block Bitcoin Payments

• Merchants Covered: 4 million (global Square merchants)
• Settlement Network: Bitcoin Lightning Network (instant confirmation)
• Fee Policy: No merchant fees until 2027
• Automatic Conversion: Part of daily sales automatically converted to Bitcoin
• Hardware Support: BitKey self-custody wallet
• Consumer Access: Merchant map integrated into Cash App
• Policy Advocacy: Tax exemption for small Bitcoin transactions

Policy Advocacy and Overcoming Adoption Barriers

Dorsey’s policy advocacy extends beyond technology, reflecting a deep understanding of the environment needed for large-scale Bitcoin adoption. His core proposal is establishing “minimum tax exemptions” for everyday Bitcoin transactions. Currently, U.S. tax law treats cryptocurrencies as property rather than currency, meaning even small transactions trigger capital gains taxes, creating administrative burdens that hinder Bitcoin’s utility as a payment method.

Dorsey advocates for exemptions similar to current credit card rewards and bank interest tax treatments, where small gains are tax-free. Although legislative attempts in recent months have failed, the push from mainstream companies like Block could renew political attention.

Globally, countries like Germany and Portugal already offer tax incentives for personal crypto transactions, leading to higher merchant acceptance. Block’s strategy is clear: the technological infrastructure (Lightning Network) is ready to support daily Bitcoin payments, but widespread adoption depends on favorable regulatory environments.

Notably, Dorsey’s advocacy aligns with his long-standing view that “Bitcoin will become the native currency of the internet,” and Block’s product ecosystem is a systematic effort to turn that vision into reality.

Market Impact of Block’s Bitcoin Payment Launch

Block’s initiative arrives at a pivotal market juncture, potentially accelerating the shift of cryptocurrencies from investment assets to practical currencies. For merchants, accepting Bitcoin not only reduces transaction costs (especially with free transactions until 2027) but also offers access to a younger, tech-savvy customer base and participation in Bitcoin’s long-term value appreciation through automatic conversion.

For consumers, Lightning Network payments address Bitcoin’s core usability challenge—instant settlement—while integration into familiar apps like Cash App lowers the barrier to entry. Industry data as of October 2025 shows over 15,000 merchants worldwide accepting Bitcoin via various solutions; Block’s entry could multiply this number within a year.

In terms of competitive landscape, this move positions Block ahead of PayPal (which only offers Bitcoin buying and holding) and Strike (focused on Lightning but lacking Square’s merchant network).

Market reaction was modest: Block’s stock (ticker XYZ) rose slightly by 0.5% to $65.80, while Bitcoin increased by 1.7% to $105,456. The muted response likely reflects prior partial disclosures in October, with long-term impacts hinging on actual merchant adoption and transaction volumes.

Conclusion

Block’s rollout of Bitcoin payments to 4 million merchants marks a significant milestone in mainstreaming cryptocurrency. By leveraging Lightning Network integration and fee waivers, it addresses key technical and economic barriers for merchants. Its “dual-sided” ecosystem approach and comprehensive product suite create synergistic advantages, while policy advocacy aims to remove regulatory hurdles. As Bitcoin evolves from a store of value to a medium of exchange, Block’s strategic positioning could reshape the payments industry and serve as a blueprint for traditional fintech firms seeking crypto integration.