Square’s Bitcoin Rollout Could Chip Away at Credit Card Revenue

Financial technology firm Square is now letting some merchants accept bitcoin payments, a move that could cut into credit card issuers‘ transaction revenue — especially if it triggers a broader shift in how consumers choose to pay.

President Donald Trump signed the Guiding and Establishing National Innovation for U.S. Stablecoins (GENIUS) Act into law on July 18, 2025, and it hasn’t taken long for dominoes in the payment space to begin falling.

Square’s decision to support bitcoin payments comes as cryptocurrencies gain mainstream credibility in 2025. For credit card issuers, the notion of digital currencies edging out traditional transactions is no longer a distant possibility — it’s starting to feel real.

Card issuers won’t lose serious fee revenue to crypto unless consumers start using it en masse. But that won’t happen if merchants still aren’t willing to take it.

Square’s move opens the door for cryptocurrency enthusiasts to put their coin reserves to practical use. And it’s a door that, given the current pro-crypto mood in Washington D.C., isn’t likely to slam shut anytime soon.

Block is the parent company of Square. Block’s Business Lead, Owen Jennings, shared his excitement about Square enabling Bitcoin payment acceptance for merchants in a message he posted to social media site X last week.

“Boom,” Jennings wrote. “Today we’re onboarding our first few Square sellers for the new native bitcoin acceptance experience. This is the way!” 

Credit card issuers may not be too thrilled about cryptocurrency encroaching onto their turf. But, for some merchants, accepting bitcoin as a payment method may make a lot of sense for their business.

“When a coffee shop or retail store can accept bitcoin through Square, small businesses get paid faster, and get to keep more of their revenue,” Miles Suter, Block’s Bitcoin Product Lead said earlier this year. “This is about economic empowerment for merchants who like to have options when it comes to accepting payments.”

The credit card industry isn’t new, and issuers have seen other competitors come along before and try to swipe a piece of the payments pie.

Square plans to roll out the new service to all of the merchants it works with in 2026.

Credit cards offer cardholders benefits, including sophisticated rewards programs, that other forms of payment can’t yet match. Card issuers can offer education to cryptocurrency fans about the value of the rewards they offer, and they can communicate how cash back programs can provide people with more funds to purchase crypto.

Credit card issuers that haven’t begun developing plans to grow in the face of increased competition from alternative payment sources like cryptocurrency should start building their strategies soon.

Square is only allowing a selection of its merchants to accept bitcoin payments from customers at this point. But the company is planning to roll out the service to all of the merchants on its platform by 2026.