Square, the payments processor operated by Block Inc. under CEO Jack Dorsey, has introduced a feature that allows local businesses in the US to process Bitcoin payments directly at the point of sale and maintain their Bitcoin in a built-in wallet, thereby enhancing Bitcoin’s application as a payments method.

This new Bitcoin service, announced on Wednesday, enables merchants to both accept Bitcoin (BTC) payments and convert a part of their sales into BTC automatically. From now until 2026, Square is waiving processing fees, although a nominal transaction fee of 1% will come into play starting January 1, 2027.

Merchants can access their Bitcoin from a dedicated wallet within Square’s existing dashboard, where they also have the option to buy, sell, or withdraw their assets. However, the service is currently restricted to US merchants, specifically excluding those in New York State, and remains unavailable to international sellers.

With more than 4 million merchants using Square’s payment platform, this rollout could signify a pivotal advancement in the wider adoption of cryptocurrencies.

Square’s recent embrace of Bitcoin aligns with their previously stated intentions to roll out such services by 2026, reflecting Block Inc.’s long-term cryptocurrency strategy, as well as Jack Dorsey’s ongoing promotion of Bitcoin.

Previously, Dorsey integrated Bitcoin trading capabilities into Block’s Cash App and has been proactive in establishing an open-source Bitcoin mining system to lower expenses in the energy-heavy mining industry.

Currently, Block Inc. has accumulated a total of 8,692 BTC on its balance sheet, positioning it as the 13th largest public holder of Bitcoin globally, according to industry data.

Crypto Payments Regaining Attention

The trend of utilizing cryptocurrencies for payments is resurging, propelled by a more accommodating regulatory framework in the United States and a growing acknowledgment of digital currencies as a legitimate asset class.

Square referred to data from eMarketer forecasting an 82% increase in the use of crypto payments in the US from 2024 to 2026.

A recent YouGov study indicated that consumers in both the US and UK are increasingly recognizing payments as a primary application for cryptocurrencies, suggesting that advancements in artificial intelligence may further enhance this adoption as AI tools start integrating financial functionalities.

Meanwhile, payment titan PayPal is broadening its peer-to-peer cryptocurrency services, empowering users to transact using Bitcoin, Ether (ETH), and their dollar-pegged stablecoin, PYUSD.