Compass Coffee in Washington, D.C. became the first business in the world to accept BTC payments through a standard Square POS terminal.
The new system, developed by FinTech company Square, a subsidiary of Jack Dorsey’s Block, enables retailers to accept Bitcoin payments directly at checkout. The first live transactions took place across Compass Coffee’s Washington locations, utilizing the Lightning Network for processing.
According to Michael Haft, Co-Founder of Compass Coffee, the transactions were instant and error-free, while configuring the POS terminals took less than two minutes. The system operates alongside traditional payment methods — bank cards and cash — that the business used for over a decade.
This pilot marks the first real-world demonstration of a technology capable of transforming the crypto payments market. Lightning payments at Compass Coffee were tested using ten different wallets, including Cash App, Wallet of Satoshi, Strike, Zeus LN, and Phoenix Wallet. All transactions were completed instantly.
Square plans to scale the technology globally starting November 10. Merchants will be able to accept BTC payments and automatically convert up to 50% of daily revenue into crypto. No transaction fees will be charged until 2027, after which a 1% fee will apply.
Experts describe the rollout as a turning point for the industry, noting that the Lightning Network eliminates the need for banks and traditional payment processors, significantly reducing transaction costs. The initiative also opens doors for loyalty programs, cashback options, and lower retail prices due to the removal of intermediary fees.
However, broader adoption will require not just speed but also an improved UX, integration with retail systems, and a clear regulatory framework. Jack Dorsey called for federal tax exemptions on small Bitcoin payments, while Congress continues to debate related legislation.
Earlier this year, Block announced plans to integrate Bitcoin payment capabilities into the Square financial platform by May 2025. Learn more about this and other major crypto payment integrations from H1 2025 in a special report at CP Media.
