Block Expands Payment Services
In a major expansion of its payment services, Block, the company co-founded by Jack Dorsey, announced on Monday that it has rolled out Bitcoin payment capabilities to four million merchants worldwide through its Square platform. This innovative feature permits businesses to accept Bitcoin at checkout, leveraging the efficiency of the Lightning Network for instant settlement, while waiving transaction fees until 2027. Merchants now have the option to automatically convert a percentage of their daily card sales into Bitcoin, providing an added layer of functionality.
Details from Dorsey
Dorsey detailed these advancements in the company’s third-quarter update to shareholders, emphasizing that Square Bitcoin represents the first comprehensive solution for businesses to process Bitcoin payments while also managing digital wallets. Just a few weeks post-launch, the service was successfully utilized at Compass Coffee, a coffee chain located in Washington D.C. This initiative aligns with Block’s goal to enhance the financial choices available to sellers, making Bitcoin a more viable option for daily transactions in commerce.
“We’re striving to integrate Bitcoin payments with the simplicity of traditional card transactions,” stated Miles Suter, the Head of Bitcoin Product at Block, in an announcement made in October.
He highlighted how this dual approach, serving both sellers and consumers through Square and Cash App, positions the company to integrate Bitcoin into daily financial activities rather than merely a financial asset.
Advocacy and Additional Products
In a related initiative, Dorsey has advocated for a de minimis tax exemption, aiming to alleviate the burdens of reporting minor Bitcoin transactions as capital gains, following a recent legislative attempt that did not succeed. Block has also rolled out various other Bitcoin-related products; last year, it introduced a self-custody hardware wallet named BitKey. Additionally, its Cash App, a competitor to platforms like Venmo and PayPal, enables users to easily buy, sell, and transfer Bitcoin. Users can also find a comprehensive map of global merchants accepting Bitcoin, including those on the Square platform, within the Cash App.
Market Response
On the financial front, shares of Block (traded under the symbol XYZ) rose by approximately 0.5% on Monday, reaching $65.80. Meanwhile, Bitcoin’s value has seen a 1.7% increase in the past day, currently trading at $105,456.
