The payment system "Square" which is currently being deployed in Japan will support Bitcoin Settlement｜It is planned to expand to all eligible merchants.

Table of Contents* 1. Square's Settlement System Supports Bitcoin Settlement

• 2. Utilize the Lightning Network for BTC Settlement
• 3. The "P2P Settlement method" that BTC aimed for has been realized.

Square's Settlement System Supports Bitcoin Settlement

On May 27, 2025, Block, the financial services and digital settlement company founded by Twitter founder Jack Dorsey, announced that its settlement system 'Square' will support Bitcoin settlement.

Square is a payment processing service that allows for the integrated use of cashless payment terminals, POS registers, receipt printers, and more. By implementing Square's payment terminals, stores and businesses can accommodate various payment methods such as credit cards, electronic money, and QR code payments.

Block offers a variety of products such as the self-managed Bitcoin wallet "Bitkey" and the "Cash App" which includes functions for buying, selling, and sending Bitcoin. They have shown a proactive approach to adopting Bitcoin for some time, and this announcement reports that Square's Settlement system is expected to support Bitcoin payments.

** The official introduction of Bitcoin payment is scheduled to begin in stages from the second half of 2025, but it will be expanded to all eligible merchants in 2026 (*subject to regulatory approval)**, Bitcoin payment will be unveiled for the first time at "Bitcoin 2025" to be held in Las Vegas on May 27 ~ 29, and visitors will be able to see "BTC Inc.", it is also explained that you can actually experience the bitcoin payment function at the product sales booth.

Utilizing the Lightning Network for BTC Settlement

Square's Bitcoin Settlement service utilizes the technology of the Lightning Network, which allows for small transfers of Bitcoin with minimal fees. It has been reported that merchants will be able to accept Bitcoin Settlements directly through Square's terminals.

Customers can make Bitcoin Settlements simply by scanning a QR code with a Bitcoin wallet that supports the Lightning Network, which allows for instant completion of Bitcoin Settlements and low fees.

Furthermore, the backend processes such as currency rate calculations and settlement confirmations are automatically handled by Square, and it is explained that merchants can choose to either hold the received Bitcoin as is or automatically convert it to fiat currency in real-time.

spend your Bitcoin at @Square terminals.

merchant can choose to hold the bitcoin, or auto-convert it to fiat in real-time.

try it at Bitcoin 2025 today. rolls out to more sellers this year.

— jack (@jack) May 27, 2025

Bitcoin Settlement is now possible on Square's terminals.

Merchants can choose to either hold the received Bitcoin as it is or automatically convert it to fiat currency in real-time.

Available for experience at today's "Bitcoin 2025". More merchants are scheduled to be introduced by the end of this year.

The "P2P Settlement Method" that BTC aimed for has been realized

Block commented in an official announcement that "through the Bitcoin Settlement service, Bitcoin will fulfill its original role as a 'peer-to-peer settlement method'," and also explained that "making Bitcoin usable at millions of merchants is a significant step forward."

Square's settlement terminals are widely implemented in various regions around the world, including Japan. Therefore, if Bitcoin payments via the Lightning Network become possible with Square's terminals, it is expected that the number of stores accepting Bitcoin will significantly increase, making Bitcoin a more familiar presence.

It is currently unclear whether Bitcoin Settlement will be available on Square terminals in Japan, but there is talk of a policy stating that "by 2026, it will be rolled out to all merchants with the approval of regulatory authorities," so it is expected that in the future, Bitcoin Settlement will be possible at Square-implemented stores in Japan.

When conducting cryptocurrency settlements in Japan, it is necessary to pay attention to tax-related issues. However, Bitcoin settlements have been introduced at some stores for some time, and the number of stores that accept payments in multiple cryptocurrencies is gradually increasing.

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source: Block announcement

Written and translated by: BITTIMES Editorial Department

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