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Square vs Stripe
https://g.co/gemini/share/4ec671b3166a
This report provides a comprehensive analysis for US-based online vendors of digital goods evaluating two distinct cryptocurrency payment solutions: accepting Bitcoin (BTC) via Square and accepting USD Coin (USDC) via Stripe.
A US-based online vendor of digital goods can indeed use Square to accept Bitcoin payments, provided their business is not located in New York State and does not fall under Square's general list of unsupported industries . The service is designed to integrate into existing e-commerce platforms and point-of-sale systems.
The fee comparison between the two platforms is compelling. Square is offering zero processing fees for Bitcoin payments through the end of 2026, after which a 1% fee will apply. In contrast, Stripe charges a flat 1.5% fee for every USDC transaction . While this presents a clear cost advantage for Square, the decision between the two platforms involves a deeper strategic consideration of their underlying philosophies and operational models.
The core finding of this analysis is the critical flexibility offered by Square versus the mandated simplicity of Stripe. Square's "Square Bitcoin" suite provides merchants with a choice. A merchant can operate in a completely risk-free manner by opting for immediate and automatic conversion of all Bitcoin payments into US dollars, effectively using the service as a low-cost payment rail. Alternatively, a merchant can choose to use the platform as an immersive gateway into the Bitcoin economy, with tools to accept, hold, and manage Bitcoin as a financial asset in a custodial wallet, thereby engaging with the asset's potential but also its volatility. This entire process is simplified through a custodial wallet managed via Cash App, meaning the merchant never has to handle complex private keys.
Conversely, Stripe's "Crypto" payment method uses stablecoins as a pragmatic, behind-the-scenes technology rail. It abstracts away all cryptocurrency complexity, insulates the merchant from all volatility by mandating immediate USD settlement, and functions as an efficient and cost-effective channel for global payments.
Ultimately, the optimal choice is not solely determined by the headline fee percentage. It is a strategic decision. For the risk-averse merchant focused on minimizing costs, Square's 0% fee combined with automatic USD settlement presents a powerful value proposition. For the merchant seeking to build a treasury of digital assets, Square provides the necessary tools. For the merchant focused on global reach with absolute operational simplicity, Stripe offers a predictable and streamlined solution.
Published on 2 months, 2 weeks ago