First Coffee Chain in Washington D.C. Lets Customers Pay With Bitcoin Instantly on Square Registers

Bitcoin Payments Become Seamless at Compass Coffee With Square Integration

Customers at Compass Coffee in Washington, D.C., can now pay for their coffee with Bitcoin using Square’s standard point-of-sale terminals.

The chain, which operates 27 locations in the U.S. capital, demonstrated the system during DC Fintech Week, showing that digital currency can move as quickly as traditional payments.

Shoppers simply scan a QR code on the Square register, and transactions settle instantly via the Lightning Network, eliminating the long confirmation delays that have previously hindered crypto adoption.

Lightning Network Transforms Bitcoin Into a Practical Payment Method

Michael Haft, co-founder of Compass Coffee, said payments from ten different wallets were processed “instantly and flawlessly” during the trial.

The demonstration proved that Bitcoin can now function reliably in small retail settings.

The system also allows merchants to convert up to half of their daily sales into Bitcoin with no processing fees for the first year.

Industry observers note that the Lightning Network removes intermediaries such as banks and card processors, reducing costs and enabling additional features like loyalty programmes or cashback schemes.

Pranav Agarwal, a fintech analyst, said,

“Payment acceptance systems at PoS are now at scale and will usher in a new era of BTC adoption. Typical card payments involve an issuing bank, a receiving bank, and card rails, whereas BTC payments can be self-custodial with just a single enabler, such as Square.”

Square’s Broader Crypto Ecosystem Aims to Simplify Payments

The initiative is part of Block’s wider crypto strategy, which includes Cash App, Bitkey wallets, and Proto mining hardware.

Miles Suter, Head of Bitcoin Product at Block, highlighted the goal:

“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.”

Square has already piloted its BTC conversion feature, accumulating 142 BTC in early trials in 2024.

The platform expects crypto payments in the U.S. to grow 82% between 2024 and 2026, signalling rising interest from both merchants and consumers.

Could Bitcoin Payments Scale Beyond the U.S.?

While U.S. adoption remains limited, experts see significant potential globally.

Maksym Sakharov, co-founder and CEO of WeFi, noted that demand for Bitcoin payments is already strong in countries like the Philippines, Vietnam, and Nigeria, where crypto can serve as a practical financial tool rather than a luxury.

YZ NG, Head of Product at UR, commented that Compass Coffee’s pilot “shows what needs to happen next for Bitcoin payments to become as seamless as card transactions.”

He added that achieving true parity requires smooth user experience, integrated merchant systems, and a clear compliance framework.

Regulatory Challenges Remain

Despite the technological progress, Bitcoin payments still face regulatory hurdles.

Jack Dorsey has called for federal tax exemptions on small Bitcoin transactions, and President Donald Trump made similar efforts through a reconciliation bill, which ultimately did not advance.

Senator Cynthia Lummis continues to push for measures to ease crypto adoption.

Speed and Accessibility Make Bitcoin Viable for Daily Use

The trial at Compass Coffee illustrates how the Lightning Network addresses previous barriers, such as slow confirmation times, while enabling small businesses to participate in the crypto economy.

With seamless integration on familiar Square terminals, Bitcoin could soon become a practical option for everyday purchases, potentially expanding to thousands of cafés and retail outlets across the U.S.