Washington D.C. Café Becomes First to Accept Bitcoin via Square Terminal

A coffee shop in Washington, D.C. has made history as the first merchant worldwide to accept Bitcoin payments directly through Square’s point-of-sale (POS) system, marking a major step toward mainstream crypto transactions in retail.

Compass Coffee, a popular 27-location chain in the U.S. capital, demonstrated the integration during DC Fintech Week. Using Square’s standard white touchscreen register, customers were able to pay for their drinks over the Bitcoin Lightning Network — the same device used by millions of small businesses nationwide.

“We tested Lightning payments from 10 different wallets—fast, reliable, and honestly pretty fun. All went through instantly,” said Compass Coffee co-founder and CEO Michael Haft in a post on X (formerly Twitter).

Square’s First Real-World Bitcoin Pilot

The initiative marks the first public rollout of Square’s newly announced Bitcoin payment feature, unveiled last week by its parent company, Block. According to Miles Suter, Block’s Head of Bitcoin Product, the goal is to make Bitcoin payments “as seamless as card payments” while offering small businesses advanced financial tools “that, until now, have been exclusive to the largest corporations.”

Beginning November 10, participating merchants will be able to accept Bitcoin and automatically convert up to half of their daily sales revenue into BTC, with zero processing fees for the first year.

Lightning Network Unlocks Instant Crypto Transactions

Industry observers say the pilot could redefine Bitcoin’s role in day-to-day commerce. “Bitcoin payments have been part of the white paper and intrinsic to its earliest positioning as a currency,” said Pranav Agarwal, independent director at Jetking Infotrain India. “However, adoption has been slow mainly because block times tend to be around 10 minutes.”

He added that the Lightning Network “has changed that,” enabling instant and low-cost transactions. Agarwal noted that Bitcoin payments could also introduce new business incentives such as loyalty rewards or lower prices, since merchants would avoid high interchange fees typical of card networks.

A Global Shift in Crypto Utility

WeFi CEO Maksym Sakharov said the real growth potential for Lightning payments lies beyond the United States. “It can, and most likely will, scale globally,” he told Decrypt. “The real demand isn’t in Silicon Valley but in countries like the Philippines, Vietnam, and Nigeria, where crypto isn’t a luxury — it’s a tool for survival.”

The successful Compass Coffee pilot, he added, underscores how decentralized finance technology is bridging into the real economy through consumer-facing use cases.

Regulation and Policy Still Catching Up

Despite the progress, legal barriers persist. Block CEO Jack Dorsey has recently renewed calls for a federal tax exemption on small Bitcoin transactions — part of a July initiative tied to President Trump’s reconciliation bill, which failed to advance. Senator Cynthia Lummis (R-WY) has stated she continues to pursue the exemption as part of a broader digital asset reform package.

Block Inc. (NYSE: XYZ) closed at $76.13 on Monday, down 0.05% on the day, and slipped slightly to $76.10 (-0.04%) in after-hours trading, according to Google Finance data.

The Road to Seamless Crypto Payments

According to YZ Ng, Head of Product at UR, Compass Coffee’s Lightning demo highlights “how far DeFi technology has come,” but achieving parity with card payments will require more than transaction speed. “Payment UX, merchant integration, and clear compliance frameworks need to align,” he said. “Adoption will follow utility once crypto payments feel as natural as any other contactless experience — without the friction or uncertainty.”