Square processes first Bitcoin payment at US coffee chain

A Compass Coffee checkout in DC ran Lightning payments through a regular Square terminal – no special crypto hardware. Store co‑founder Michael Haft said the test used ten different wallets and each transaction cleared immediately.

“It was fast, reliable – and honestly pretty fun. All went through instantly,” Haft wrote, after listing Cash App, Wallet of Satoshi, Strike, Zeus and Phoenix among those tested, including a self‑custodial node setup.

This live run sits between Square’s Oct. 8 announcement and a wider launch on Nov. 10, and plugs into Block’s broader ecosystem (Cash App, Bitkey, Spiral). Merchants can accept BTC and optionally auto‑convert up to half of daily sales into Bitcoin. The U.S. rollout excludes New York at launch; Square says processing is free through 2026, then 1% per transaction.

For retailers, the appeal is operational: the same white touchscreen, tap‑and‑go flow, no new scanner. For customers, Lightning hides the complexity – no funding‑rate jargon or manual confirmations. For economics, a 0% window against typical 2–3% card fees opens room to test BTC‑backed discounts and loyalty.

For crypto readers, this puts Lightning in front of mainstream U.S. shoppers on familiar terminals, without bespoke integrations. If early reliability holds and staff training stays light, Bitcoin acceptance can scale beyond pilots – though federal tax treatment for small BTC payments (which Jack Dorsey has urged to exempt, with Sen. Cynthia Lummis saying she’s still working on it) and Lightning uptime will shape how fast it spreads.

Next, Square’s nationwide rollout and merchant pilots will test two variables: whether the payments work under weekend rush load, and whether a lower fee schedule actually shifts behavior. A steady experience could encourage more chains to try Lightning at checkout, while hiccups would push merchants back to cards until issues are ironed out.