DC Coffee Shop First to Accept Bitcoin via Square POS

Compass Coffee, a popular 27-location chain in Washington, D.C., made financial technology history this week by becoming the first Square seller globally to process Bitcoin payments through a standard register. The demonstration occurred during DC Fintech Week, using the same white touchscreen Square terminal employed by millions of small businesses nationwide. All transactions completed instantly, marking a significant departure from Bitcoin’s traditional 10-minute block times that have historically hindered its adoption as a payment method.

Michael Haft, CEO and co-founder of Compass Coffee, enthusiastically documented the testing process, tweeting that the company tested Lightning payments from 10 different wallets and found them “fast, reliable, and honestly pretty fun.” The successful demonstration represents the first real-world deployment of Square’s newly announced Bitcoin payment system, which was unveiled by parent company Block last Wednesday. This breakthrough suggests that cryptocurrency payments may finally be ready for mainstream retail adoption.

Block’s innovative Bitcoin payment system enables merchants to accept cryptocurrency while providing the flexibility to convert up to 50% of daily sales revenue into Bitcoin. Starting November 10, the system will offer zero processing fees for the first year, providing a significant financial incentive for small businesses to adopt the technology. Miles Suter, Block’s Head of Bitcoin Product, emphasized that the company is “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.”

The technology leverages the Lightning Network to enable instant transactions, addressing what Pranav Agarwal, independent director at Jetking Infotrain India, identified as the primary barrier to Bitcoin payment adoption. “Bitcoin payments have been part of the white paper and intrinsic to its earliest positioning as a currency,” Agarwal told Decrypt. “However, the adoption has been slow mainly because of the block times that tend to be 10 minutes. Lightning network has changed that and now payment acceptance systems at PoS at scale will bring in a new era of BTC adoption.”

The system’s architecture eliminates the complex intermediary structure of traditional card payments. As Agarwal explained, “A typical card payment has an issuer bank, receiver bank, and card rails, while BTC payments can be self-custodial with just a single enabler like Square.” This streamlined approach could “unlock new value through loyalty programs, cashbacks, or lower prices as sellers don’t need to absorb high interchange fees” that typically burden small businesses.

While the demonstration occurred in the United States, experts see even greater potential for Bitcoin payment adoption in developing economies. Maksym Sakharov, co-founder and CEO of WeFi, told Decrypt that global scaling “can, and most likely will” happen, noting that real demand lies not in Silicon Valley but in countries like the Philippines, Vietnam, and Nigeria, where crypto “isn’t just another luxury—it’s a weapon for survival.” This perspective suggests that the technology demonstrated at Compass Coffee could have its most profound impact in regions with less developed financial infrastructure.

Despite the technological breakthrough, regulatory hurdles remain significant barriers to widespread adoption. Jack Dorsey recently called for a federal tax exemption on small Bitcoin payments, reviving a July effort tied to President Trump’s reconciliation bill that failed to advance. Senator Cynthia Lummis (R-WY) confirmed she is still working on this initiative, indicating ongoing political support for creating a more favorable regulatory environment for small cryptocurrency transactions.

YZ Ng, head of product at UR, emphasized that true parity with traditional payment systems “requires more than speed.” He told Decrypt that the ecosystems of “payment UX, merchant integration, and clear compliance frameworks need to align,” noting adoption will “follow utility” once crypto payments feel like any other contactless experience, “sans added friction or uncertainty.” This suggests that while the technology has matured significantly, broader ecosystem development remains necessary for mass adoption.