Square Lightning Bitcoin payments are now available at Compass Coffee in Washington, D.C., letting customers pay with Bitcoin over the Lightning Network using a standard Square register. The pilot proves instant, low-fee transactions at the point of sale and signals broader merchant viability for Bitcoin payments.
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Compass Coffee piloted Bitcoin payments on a standard Square terminal using the Lightning Network.
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Tests covered 10 different Lightning wallets and completed instantly and reliably.
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Square reports 142 BTC accumulated via early conversion pilots; U.S. crypto payments projected to grow 82% (2024–2026).
Square Lightning Bitcoin payments pilot at Compass Coffee shows instant Lightning purchases on Square registers — read the pilot report and next steps from COINOTAG.
Published: October 15, 2025. Updated: October 16, 2025. Author/Organization: COINOTAG.
What are Square Lightning Bitcoin payments?
Square Lightning Bitcoin payments let merchants accept Bitcoin at the point of sale using the Lightning Network for instant settlement. Square integrates Bitcoin into its existing register ecosystem so sellers can accept payments and optionally convert a portion of sales into BTC with merchant-facing management tools.
How does Compass Coffee accept Bitcoin via Square’s terminal?
Compass Coffee uses a standard Square touchscreen register and Square’s BTC payment system to accept Bitcoin over the Lightning Network. Customers scan a QR code or interact via a Lightning-compatible wallet. Transactions settle instantly on the Lightning layer, avoiding typical on-chain block-time delays.
Compass Coffee tests Lightning payments from 10 different wallets
Big moves today – just deployed the first Square terminal in the world accepting bitcoin.
Thank you @jack ! Cannot wait to see this come to Square devices worldwide soon.
Tested on a huge range of wallets, all worked seamlessly. The beauty of open standards. ⚡️
Thanks… pic.twitter.com/QxigKGIao7
— Compass Coffee (@CompassCoffeeDC) October 15, 2025
Compass Coffee, a 27-location chain in Washington, D.C., demonstrated the integration during DC Fintech Week. Michael Haft, CEO and co-founder of Compass Coffee, said the company tested Lightning payments from 10 different wallets. He reported that all tests were fast, reliable, and completed instantly.
Square’s rollout allows merchants to accept Bitcoin payments and choose to convert up to 50% of daily sales revenue into BTC. As part of the initial offer, Square waived processing fees for the first year for participating merchants, according to Square’s announcement.
Lightning Network changes speed of BTC payments
Industry participants say Lightning materially reduces perceived latency for Bitcoin point-of-sale purchases. Pranav Agarwal, independent director at Jetking Infotrain India, observed that Lightning overcomes the intrinsic 10-minute block-time limitation of on-chain Bitcoin transactions. Agarwal noted this is a key enabler for merchant adoption.
Industry quotes reinforce the product positioning. Miles Suter, Head of Bitcoin Product at Block, said, “We’re making Bitcoin payments as seamless as card payments while giving small businesses access to financial management tools that, until now, have been exclusive to the largest corporations.”
Maksym Sakharov, co-founder and CEO of WeFi, emphasized demand for real-world Bitcoin payments outside Silicon Valley, identifying countries like the Philippines, Vietnam, and Nigeria as high-demand markets where crypto payments are a critical financial tool.
Square provided data points in its product release indicating that crypto payments in the U.S. are expected to grow 82% between 2024 and 2026. The company also reported that early use of its conversion feature accumulated 142 BTC during 2024 pilot stages. These figures were included in Square’s public product materials and press commentary.
Frequently Asked Questions
Can small businesses convert daily sales to Bitcoin with Square’s system?
Yes. Square’s system permits merchants to accept Bitcoin payments and convert a defined portion of daily sales into BTC. Square’s pilot terms allowed conversion of up to 50% of daily revenue and offered zero processing fees for the first year, according to Square’s product announcement.
How fast are Lightning Bitcoin payments at the point of sale?
Lightning payments settle nearly instantly at the point of sale, typically in under a second to a few seconds from the customer’s wallet confirmation. The Lightning Network routes payments off-chain, eliminating the typical on-chain 10-minute block confirmation delay.
Key Takeaways
- Real-world pilot: Compass Coffee’s deployment is the first known public pilot of a standard Square terminal accepting Lightning Bitcoin payments, demonstrating merchant readiness.
- Performance and compatibility: Tests on 10 different wallets succeeded, showing strong interoperability and near-instant settlement via Lightning.
- Business implications: Square’s integration could reduce interchange costs and unlock loyalty or cashback features while giving small merchants simple BTC acceptance tools.
Conclusion
The Compass Coffee pilot with Square Lightning Bitcoin payments offers a practical blueprint for mainstream merchant acceptance of Bitcoin. Official statements from Square and participating executives show the pilot is focused on speed, interoperability, and merchant tools. Continued regulatory clarity and UX refinement will determine the pace of broader adoption. For now, the pilot signals a meaningful step toward seamless in-person Bitcoin payments.
