A Compass Coffee location in Washington, D.C. became the first store to accept a bitcoin payment using Square’s new point-of-sale system.
Square Bitcoin enables merchants to accept bitcoin payments with zero processing fees and also allows them to convert traditional card sales into bitcoin within the included wallet. Compass Coffee tested Square’s platform and successfully completed transactions from 10 different wallets over the Lightning Network.
These payments were processed using the standard Square device—a mainstay for many small businesses. While the coffee purchase itself may have been small, it represents another meaningful step forward for bitcoin and the broader adoption of digital assets.
“This is super cool, and it lines up with everything we’ve been talking about here at Javelin—Layer 2’s, Lightning Network, and reward programs,” said Joel Hugentobler, Cryptocurrency Analyst at Javelin Strategy & Research. “Square continues to be a leader in payments by providing optionality. It’s pretty awesome to see this stuff unfold right in front of us, and I think more companies will follow.”
Gaining Mainstream Traction
For over a decade, there has been ongoing discussion about when bitcoin payments would finally achieve mainstream adoption. One of the concerns surrounding bitcoin and other cryptocurrencies has been their volatility. Yet, despite short-term fluctuations, bitcoin has continued to surge to new heights, largely driven by increased adoption among leading financial institutions.
In addition, broader platforms are emerging to facilitate bitcoin transactions. For example, Walmart-backed OnePay recently added crypto functionality, and PayPal launched a crypto platform enabling merchants to accept payments in over 100 cryptocurrencies while allowing consumers to connect wallets from platforms like Coinbase Wallet, MetaMask, and Kraken.
Copying the Strategy
One of the key factors across these platforms is flexibility. Accepting payments in crypto doesn’t mean merchants are required to hold digital assets. For example, Square’s business owners can choose to either accept crypto payments or hold digital assets as a store of value.
Given bitcoin’s success, the latter option can be a game changer. Many companies have integrated bitcoin investments into their business models—a strategy most notably employed by MicroStrategy, which later rebranded as Strategy.
“There have been dozens of digital asset treasury companies trying to copy Strategy’s strategy hitting the market,” Hugentobler said. “It shows there is a demand for institutions to hold this stuff on their balance sheets—and this process allows for them to do it in a different way.”
The post Square’s Platform Sees First Bitcoin Payment at Coffee Shop appeared first on PaymentsJournal.
