Square Loyalty Alternatives: How Bitcoin Rewards Compare to Points Programs
How Square Loyalty and Oshi Bitcoin rewards compare for Square merchants. How they work, where they overlap, and what makes each one different.
How do Bitcoin rewards with Oshi compare to Square's built-in loyalty program?
Square Loyalty is a solid loyalty program. It is built into the POS, easy to set up, and does exactly what it says: reward customers with points for purchases. Millions of merchants use it.
But most loyalty programs look the same to customers. Points, tiers, discounts. Every coffee shop, boutique, and restaurant offers some version of the same thing. That is not a criticism of Square Loyalty. It is the reality of the loyalty industry. Oshi takes a different approach by rewarding customers with real Bitcoin instead of points, and it plugs directly into Square.
This article breaks down both options side by side.
How Square Loyalty Works
Square Loyalty is a points-based rewards program built into the Square ecosystem. Here is how it works at a high level:
- Earning points. You choose how customers earn: per dollar spent, per visit, per item, or per category. You can rename "points" to whatever you want.
- Redeeming rewards. You create reward tiers at different point thresholds (up to 15). Rewards can be a percentage off, a dollar amount off, a free item, or a free combo.
- VIP tiers. Up to 6 tiers with perks like points multipliers, priority checkout, or free shipping. Tiers reset on a rolling 12-month window.
- Promotions. Time-limited bonus points promotions (e.g., double points weekends).
- Customer sign-up. Customers enter their phone number on the Square display after paying. They get a welcome text and can track points through a web page or Apple Wallet pass.
- Card-linked loyalty. Once a customer's payment card is linked to their loyalty account, points accrue automatically without re-entering a phone number each time.
Square Loyalty works across Square POS, Square Online, Square Terminal, Square Register, and Square Invoices.
How Oshi Works
Oshi is a Bitcoin rewards platform that integrates with Square through the Square API. Transactions process exactly the same way they always have. Nothing changes for your staff.
- Earning rewards. You set a reward rate (e.g., 1% back in Bitcoin). Customers earn automatically on every purchase. No points math.
- Redeeming rewards. Customers can withdraw Bitcoin to a personal wallet or redeem it as store credit at your business. You set a custom multiplier that makes store credit worth more, so coming back to your store is always the best deal.
- VIP tiers. Automatic tiers based on total customer spend. Higher tiers earn better reward rates.
- Promotions. Adjust your reward rate anytime. Run bonus rewards during slow periods, holidays, or special events.
- Referrals. Coming soon. Customers will be able to refer friends and both earn Bitcoin.
- Social rewards. Customers earn bonus Bitcoin for following your business on social media.
- Customer sign-up. After paying, the Square display shows a customizable prompt. The customer enters their phone number, gets a text, and can view rewards through a dedicated web portal. No app download, no login required.
- Card-linked loyalty. Oshi runs on the same transaction data as Square. Once a customer signs up with a card, they are automatically recognized on future purchases with that same card.
Oshi works across all Square hardware and Square Online.
Feature Comparison
| Feature | Square Loyalty | Oshi |
|---|---|---|
| Reward type | Points | Bitcoin (satoshis) |
| Earning rules | Spend, visit, item, or category | Percentage of purchase |
| Reward redemption | Discounts, free items | Store credit (gift card), Bitcoin withdrawal |
| Redemption multiplier | No | Yes |
| VIP tiers | Up to 6 tiers | Automatic, spend-based |
| Referrals | No | Coming soon |
| Social rewards | No | Yes |
| Promotions | Bonus points promotions | Adjustable reward rate |
| Card-linked loyalty | Yes | Yes |
| Customer portal | Loyalty status page | Full web portal (no login required) |
| Apple Wallet | Points balance pass | Store credit gift card |
| Merchant network | Neighborhoods (coming soon) | Oshi network (live, cross-platform) |
| Square Online | Yes | Yes |
| All Square hardware | Yes | Yes |
| Staff training required | Minimal | None |
Where Square Loyalty Shines
Square Loyalty is a good product, and it deserves credit for a few things:
- Zero setup friction. It is already in your Square Dashboard. Turn it on, configure your rewards, and you are live. There is nothing to install or connect.
- Native redemption. Because it is built into Square, the redemption flow at checkout is seamless. Staff can apply rewards directly from the POS screen. This is about as frictionless as redemption gets.
- Proven ROI. Loyalty programs work. Square's own data shows loyalty customers spend 46% more and visit 57% more often. Individual merchants report similar numbers. An ice cream shop tracked loyalty customers spending nearly double per transaction compared to non-loyalty customers.
- Card-linked convenience. Once a customer's card is linked, points accrue automatically. No phone number needed on repeat visits.
That said, most loyalty programs produce similar-looking ROI numbers. Customers who sign up for any rewards program tend to be your more engaged customers already. There is a real correlation-vs-causation question that the entire industry struggles with. The lift is real, but attributing it specifically to the loyalty program is harder than the numbers suggest.
Where Oshi Adds Something Different
Oshi covers the same ground as Square Loyalty - automatic rewards, VIP tiers, promotions, redemption - and then adds features Square does not currently offer: Bitcoin rewards, a store credit redemption multiplier, a customer portal, social rewards, and a cross-platform merchant network for customer acquisition.
The reward itself stands out
Most loyalty programs are interchangeable from the customer's perspective. Points at one coffee shop feel the same as points at another. Customers sign up, earn passively, and do not think about it much until they have something to redeem.
Bitcoin is different enough to get attention. When the Square display says "You Just Earned Bitcoin" instead of "Join Our Rewards Program," people stop and engage. It is novel, and that novelty drives higher opt-in rates at the register.
Store credit redemption drives repeat visits
When a customer wants to use their Bitcoin rewards, they can redeem them as store credit at your business. Oshi creates a branded digital gift card on your Square account. Customers can save it to Apple Wallet and scan it on their next visit. For staff, it is as simple as scanning any other gift card.
You set a custom multiplier that makes store credit worth more than withdrawing the Bitcoin. That gives customers a direct financial reason to come back to your store instead of cashing out.
Learn how store credit redemption works →
A customer portal outside the store
Oshi gives every customer a dedicated web portal where they can:
- View their Bitcoin reward balance
- See their transaction history
- Redeem rewards as store credit
- Save store credit to Apple Wallet
- Engage with your brand between visits
No app download, no account creation, no login. They access it from the text they received at checkout. This gives your business a touchpoint outside of the Square POS that keeps customers connected between visits.
A cross-platform merchant network
This is one of the bigger differences. Square is building a feature called Neighborhoods that will connect Square businesses with loyalty programs. That could be powerful given the size of Square's merchant base.
Oshi already has a live merchant network, and it works differently. The Oshi network is cross-platform. It includes businesses running on Shopify, WooCommerce, Square, BTCPay Server, Zaprite, Vinoshipper, and more. Customers who use Oshi can discover any merchant in the network, regardless of what platform that merchant uses.
Square also has a map of businesses that accept Bitcoin payments. Oshi's network is specifically businesses that offer Bitcoin rewards. These are businesses actively incentivizing customers with Bitcoin, which attracts Bitcoin holders who are looking for places to shop and are predisposed to spend. That is a customer acquisition channel that points programs do not have.
No additional overhead for staff
There is no difference in the day-to-day experience for your team. Oshi does not add any steps to the checkout process. Transactions process through Square exactly the same way. The only visible change is the customer-facing display prompt, which is already a native Square feature. No training required.
Can You Run Both?
Yes. Oshi and Square Loyalty run independently on the same Square account. There is no conflict between them. Some merchants use Square Loyalty for basic point tracking and Oshi for Bitcoin rewards and store credit redemption.
You can also run Oshi on its own. The feature set covers what most merchants need from a loyalty program: automatic rewards, VIP tiers, promotions, store credit redemption, and a customer portal.
A Note on Measuring Loyalty ROI
Every loyalty platform shows impressive numbers. Loyalty customers spend more, visit more often, and have higher lifetime value. That data is real.
But here is the honest truth: it is difficult to separate correlation from causation. Customers who sign up for loyalty programs are often your best customers already. They were going to come back anyway. The loyalty program makes it easier to track them, but measuring how much incremental behavior the program actually created is harder than the dashboards suggest.
This is not unique to Square Loyalty or Oshi. It is an industry-wide challenge. The programs do help with retention, but the "2x more spending" headlines should be taken with context. The real question is whether your loyalty program gives customers a reason to choose you over the business next door. That is where differentiation matters.
The Bottom Line
Square Loyalty is a well-built, easy-to-use loyalty program. If you want a straightforward points system that is native to your POS, it does the job well.
Oshi adds something that Square does not currently offer: a reward that stands out, a redemption model that drives repeat visits, a customer portal that extends engagement beyond the register, and a cross-platform merchant network that brings in new customers. It works alongside Square Loyalty or on its own, with zero additional overhead for your staff.
Both are worth considering. The right choice depends on what you want your loyalty experience to feel like.
Get Started
Connecting Oshi to your Square POS takes just a few minutes. No developer required.
Set up Bitcoin rewards on Square →
Want the full picture? Read more about how Bitcoin rewards work on Square POS or explore the Oshi for Square integration page.
About Square
Square is a payment and commerce platform used by millions of businesses worldwide. From its point-of-sale hardware and software to online stores, invoicing, and banking, Square provides the tools businesses need to sell in person and online, manage their operations, and access financing. Integrated with Oshi, Square merchants can automatically reward customers with Bitcoin (sats) on every purchase.