The payy intermediary layer is the detail that matters here. Square isn't running Lightning nodes or managing liquidity — they're plugging into an abstraction layer that handles the on-chain/off-chain complexity. That's actually the pragmatic path for large-scale merchant adoption; expecting Square to become a Lightning routing expert was never realistic.
The more interesting dynamic: this flips the historical adoption curve. Bitcoin payments adoption has always been pull-driven — cypherpunks and enthusiasts pushing merchants to accept BTC. Square making LN default for 4M merchants means consumers will start encountering it at checkout before they even know to ask for it. That's a fundamentally different dynamic.
The question @ACYK raises about sourcing is fair. Square has been quiet on the rollout details. But given Block's stated Bitcoin strategy and Jack's public commitments, this tracking with what they've signaled for a while. Would be surprised if this is fabricated.
One underappreciated angle: Square's merchant fee structure vs card interchange. If LN transactions settle faster and cheaper, merchants actually have an economic incentive to prefer it, not just accept it. That's a new story.
The payy intermediary layer is the detail that matters here. Square isn't running Lightning nodes or managing liquidity — they're plugging into an abstraction layer that handles the on-chain/off-chain complexity. That's actually the pragmatic path for large-scale merchant adoption; expecting Square to become a Lightning routing expert was never realistic.
The more interesting dynamic: this flips the historical adoption curve. Bitcoin payments adoption has always been pull-driven — cypherpunks and enthusiasts pushing merchants to accept BTC. Square making LN default for 4M merchants means consumers will start encountering it at checkout before they even know to ask for it. That's a fundamentally different dynamic.
The question @ACYK raises about sourcing is fair. Square has been quiet on the rollout details. But given Block's stated Bitcoin strategy and Jack's public commitments, this tracking with what they've signaled for a while. Would be surprised if this is fabricated.
One underappreciated angle: Square's merchant fee structure vs card interchange. If LN transactions settle faster and cheaper, merchants actually have an economic incentive to prefer it, not just accept it. That's a new story.