A new chapter in Bitcoin adoption unfolded this week as Compass Coffee, a well-known Washington, D.C. coffee chain, became the first business in the world to process a Bitcoin transaction through a Square point-of-sale terminal. The demonstration, conducted during DC Fintech Week, showcased Square’s new Bitcoin payment integration, a major development aimed at making Bitcoin everyday money for small businesses.
The pilot transaction marks the official debut of Square Bitcoin, a suite of tools announced by Square, owned by Block, Inc., that allows sellers to accept Bitcoin payments, automatically convert sales into Bitcoin, and manage their Bitcoin holdings directly within the Square ecosystem. The new product suite consists of Bitcoin Payments, which lets merchants process Bitcoin transactions, and Bitcoin Conversions, which enables automatic conversion of card sales into Bitcoin for long-term saving or diversification.
During the live demonstration, attendees watched as a Compass Coffee barista processed a Bitcoin payment for a cup of coffee using nothing more than a standard Square register, the same sleek white touchscreen used by millions of U.S. businesses today. The payment was settled over the Lightning Network, a fast and low-cost Bitcoin network layer designed for real-time transactions.
Michael Haft, co-founder and CEO of Compass Coffee, celebrated the milestone on social media:
“We tested Lightning payments from 10 different wallets—fast, reliable, and honestly pretty fun. All went through instantly.”
In an official post, Compass Coffee added:
“Big moves today — just deployed the first Square terminal in the world accepting Bitcoin. Cannot wait to see this come to Square devices worldwide soon.”
Simplifying Bitcoin for main street
Square’s move bridges the gap between traditional payments and the Bitcoin economy, giving small businesses direct access to crypto tools without requiring technical expertise. According to the company, the new tools enable local merchants to accept Bitcoin with zero processing fees during the first year, a strategic decision designed to help small sellers keep more of their revenue while appealing to tech-savvy customers.
“Bitcoin Payments makes accepting Bitcoin as seamless as accepting a card,” said Miles Suter, Head of Bitcoin Product at Block. “We’re empowering small businesses with the same financial tools historically only available to large corporations.”
Legendary coffeehouse with 27 locations @CompassCoffeeDC is showing off Square Bitcoin Payments at DC Fintech week right now.
— Miles 🌞 (@milessuter) October 15, 2025
Tell your senator to go give it a try! pic.twitter.com/AazPN6ljuB
Suter added that this advancement reinforces Square’s mission to “make Bitcoin everyday money,” aligning with the company’s broader ecosystem that already includes Cash App’s Bitcoin services, the Bitkey self-custody wallet, and several open-source Bitcoin projects under Block.
Coffee shops to global businesses
Block’s decision to integrate Bitcoin directly into Square’s network builds on years of experimentation and growing crypto adoption. The company expects businesses of all sizes to soon have the option to conduct Bitcoin transactions directly through their existing Square terminals.
Industry experts have lauded the announcement as a turning point in merchant Bitcoin adoption. Pranav Agarwal, independent director at Jetking Infotrain India, noted that the Lightning Network addresses one of Bitcoin’s long-standing limitations, slow settlement times.
“Payment acceptance systems at point-of-sale on the Lightning Network unlock a new era for Bitcoin,” he said. “With platforms like Square, BTC payments can become self-custodial, cheaper, and more rewarding through loyalty programs and reduced fees.”
Making payments faster, and cheaper
Beyond payments, Bitcoin Conversions lets merchants automatically convert up to 50% of their daily card sales into Bitcoin. This feature allows businesses to diversify their financial reserves directly within the same Square dashboard they already use for inventory, payroll, and analytics.
Since early testing in 2024, businesses using Bitcoin Conversions have collectively accumulated over 142 bitcoin as of October 2025, evidence of growing interest in crypto-based reserves as financial hedges.
A formal rollout of Bitcoin Payments will begin November 10, 2025, for eligible U.S. merchants, with the potential for international expansion next year. The system promises zero processing fees for the first year and near-instant settlement times for Bitcoin transactions.
As Bitcoin continues its path toward mainstream use, Compass Coffee’s historic sale represents more than a novelty, it’s a glimpse of what small business payments could look like in the future. Fast, borderless, and built on open financial networks, Square Bitcoin could mark the moment where everyday commerce truly meets the digital currency era.
Matvii Diadkov
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