Square enables restaurants to accept orders from ChatGPT and Claude without marketplace fees

Restaurants can now accept orders placed directly from ChatGPT and Claude thanks to Square's new, low-fee, no setup integration

Square is launching a new ChatGPT app and Claude plugin, enabling consumers to discover restaurants and seamlessly place orders directly within these AI platforms -- and allowing restaurants, in turn, to accept orders from users and their AI agents without any technical capabilities. Even more helpfully for businesses, Square is processing these AI-driven transactions without charging the traditional marketplace commission fees that have historically squeezed the food and beverage sector. However, Square is still charging its typical online ordering fees of 3.3% plus $0.30 or 2.9% plus $0.30 per transaction for merchants subscribed to the Square Plus and Square Premium plans. The system pulls straight from the live Square catalog, dynamically mapping items, pricing, complex modifiers, and stock availability so autonomous agents never display out-of-stock inventory. For enterprise testing and deployment verification, operators can manually audit their digital footprint by using the "@" symbol to invoke the Order by Cash App plugin directly within ChatGPT or connecting it via the Claude extension directory. Depending on the specific AI tool configuration, customers can either finalize checkout completely inside the chat window via Order by Cash App, or they will be seamlessly redirected to the merchant's standard online ordering landing page with their chosen items and modifiers already fully populated in the basket. A more affordable online order system for restaurants To understand the significance of Square's move, you have to look at the math that restaurant owners face in 2026. Third-party delivery and ordering apps have fundamentally altered the economics of the restaurant industry. Currently, the major players -- DoorDash, Uber Eats, and Grubhub -- charge restaurants a hefty premium for visibility and fulfillment. These exorbitant rates exist primarily because delivery aggregators bundle the logistical costs of gig-worker delivery fleets, platform marketing, and search placement into a single revenue-sharing model. According to recent pricing structures, DoorDash charges restaurants a 15% commission on its "Basic" delivery tier, which climbs to 25% for "Plus" and 30% for its top-tier "Premier" visibility plan. Even pickup orders carry a 6% marketplace fee. Uber Eats similarly exacts standard delivery marketplace fees ranging from 20% on its "Lite" tier up to 30% for premium placement, with pickup orders costing up to 10% if in-store pricing isn't strictly validated. Grubhub echoes these rates, taking between 5% and 20% of the total order value depending on the marketing and delivery package chosen. On top of these marketplace commissions, platforms still tack on their own payment processing fees -- typically around 2.5% to 3.05% plus a fixed cent amount per order. For an independent restaurant that might only clear a 3% to 9% net profit on a good day, handing over a 25% or 30% commission on a $40 digital order essentially means preparing food at a loss. Square's new integration specifically targets this pain point. By tapping into Square's ChatGPT and Claude integrations, eligible sellers are opted in automatically with no additional setup, no new APIs to build, and, crucially, zero added marketplace fees. Instead of surrendering a 30% cut to a delivery aggregator, a restaurant discovered through an AI agent only pays Square's standard online transaction processing fee (which typically sits around 2.9% + 30¢ per transaction on a standard plan, with no monthly marketplace commission attached). Unlike the delivery aggregators, Square's fee model does not natively subsidize a driver network. Instead, if an AI-generated order requires delivery, Square utilizes a white-label dispatch network that charges a flat courier fee -- often around $7 to $10 depending on distance -- rather than taxing a percentage of the total basket size. Restaurants can choose to absorb this flat delivery cost or pass it directly to the customer, completely protecting their food margins. The result is an AI-powered discovery channel that functions like direct, first-party ordering. How the tech works Square's new integration is currently live for U.S.-based Food & Beverage sellers who have an activated Square Online Ordering profile. The system operates entirely in the background. Sellers manage their discoverability and business information -- menus, operating hours, stock levels, and pricing -- directly through their existing Square Dashboard. When a consumer prompts ChatGPT or Claude with a query like, "Find me a specialty coffee shop nearby with a great pour-over and order me a bag of their house roast," the AI parses the real-time data provided by Square. Customers can browse the results, make their selections, and finalize the purchase using Order by Cash App, all without leaving the chat interface. The transaction is then routed instantly into the seller's existing operational flow, popping up on their Square Point of Sale (POS) and Kitchen Display System just like an in-store or direct-website order. To help operators track the return on this new channel, the origin of the order is clearly tagged as an AI integration within Square's backend reporting. "Consumer behaviors and preferences are constantly evolving, and business owners can easily find themselves playing an impossible game of catch-up," said Morgan Kuntze, Global Partnerships Lead at Block, Square's parent company. "Our investment into agentic commerce aims to offload that responsibility by giving operators time back, helping connect them with customers in their communities, and keeping them at the industry's cutting edge. Modern commerce is moving at a sprint, and we're building Square to help sellers appear everywhere customers are going." Focusing on tech to let restaurants focus on food During its pilot phase, Square collaborated with Partners Coffee, a Brooklyn-based specialty coffee brand, to refine how AI-driven discovery translates into the real world. For operators like Partners Coffee, the goal isn't necessarily to become a hyper-digitized storefront, but rather to use digital efficiency to protect the physical experience of the cafe. "We don't see coffee as transactional. To us, it's an opportunity to pause and reflect, a chance to unwind, and a catalyst for connection," noted Andrew Costaris, Digital VP at Partners Coffee, in a statement provided by Square to VentureBeat. "The last thing we want is for our technology solutions to work against this mission or complicate the customer experience. With agentic commerce and AI tools working in the background, we're confident knowing that our business is being digitally discovered and is consistently growing in efficiency, while our customers can continue to enjoy a lo-fi, specialty coffee-first environment." An AI-driven e-commerce ecosystem The integration with ChatGPT and Claude is only the first step in Square's broader agentic commerce strategy. The stakes are high: industry data cited by the company indicates that more than 42% of consumers now use AI tools to assist with shopping tasks like product discovery and comparison. By 2030, analysts project that agentic shoppers could drive nearly $385 billion in U.S. ecommerce spending. Most small and mid-size businesses simply do not have the developer teams or budgets required to build custom integrations for every new chatbot, voice assistant, or AI hardware device that hits the market. Square wants to serve as that universal connective tissue. To that end, the company announced it is actively working with Amazon to bring sellers into Alexa+ voice commerce experiences. Furthermore, Square is participating in major regulatory and standards groups -- including the AAIF Agentic Commerce Working Group and the W3C Web Payments Working Group -- to shape how AI agents and commerce platforms interact at scale. Particularly notable is Square's ongoing partnership with Google to co-develop the Universal Commerce Protocol (UCP) spec for local food ordering. This open standard is designed to allow agents and systems to seamlessly communicate across the entire commerce journey. On Google's end, UCP enables discovery and checkout across AI Overviews in Search and the Gemini app. As the UCP protocol expands globally, Square plans to roll out these capabilities so that its sellers remain front and center. For the more than 4.5 million sellers currently using Square, the promise of agentic commerce is clear: a way to capture the next generation of internet traffic without sacrificing the profit margins required to keep their doors open. If Square can successfully route AI orders directly to local business's POS systems -- sidestepping the 30% toll of the delivery aggregators -- it could mark a massive shift in how the restaurant industry navigates the modern digital economy.

Square Intros ChatGPT and Claude Integrations for Sellers | PYMNTS.com

The business technology platform on Tuesday (July 1) announced a new ChatGPT app and Claude plugin, designed to help merchants "get discovered and transact" at the moment customers are making purchasing decisions via artificial intelligence (AI)-powered conversations. "Square was built to help sellers accept payments where their customers are active. This foundation has expanded to helping sellers reach customers across key digital channels - from search and maps to social and marketplaces," the company said in a news release. "As consumers increasingly turn to AI to decide where to eat, shop, and book services, Square is extending this approach to help businesses show up with accurate information and, in supported AI experiences, directly order within these channels." Beyond these new integrations -- set to go live first with Square food and beverage customers -- the company says it has also teamed up with Amazon to extend AI-powered discovery to voice commerce through Alexa+. Soiree says it's of a larger strategy to help sellers gain visibility as new AI-powered channels crop up, without having to individually manage each integration. "Consumer behaviors and preferences are constantly evolving, and business owners can easily find themselves playing an impossible game of catch-up," said Morgan Kuntze, global partnerships lead at Block, Square's parent company. "Our investment into agentic commerce aims to offload that responsibility by giving operators time back, helping connect them with customers in their communities, and keeps them at the industry's cutting edge. Modern commerce is moving at a sprint, and we're building Square to help sellers appear everywhere customers are going." The launch comes at a moment when AI adoption among consumers continues to accelerate, although PYMNTS Intelligence research shows consumers embracing the technology unevenly, giving it authority only in certain scenarios. "That creates a more complicated future than many technology companies initially envisioned," PYMNTS wrote last month. "Silicon Valley's prevailing assumption has been that consumers ultimately want AI systems capable of independently booking travel, purchasing products, managing finances, and executing everyday decisions with minimal human oversight." However, the research showed that consumers are much more open to AI serving as a collaborative layer, but not as a replacement for human agency. "Product recommendations, deal comparisons, shopping organization, and personalized discovery all rank high in consumer comfort levels," PYMNTS added. "These are areas where AI enhances efficiency while leaving the user in control."

Square launches ChatGPT and Claude integrations for sellers By Investing.com

OAKLAND, Calif. - Square announced today the launch of a ChatGPT app and Claude plugin that allows eligible sellers to be discovered and accept orders through AI-powered conversations. The integrations enable U.S. food and beverage sellers with activated Square Online Ordering profiles to appear in AI search results, display menus, and accept orders through Order by Cash App, according to a press release statement. Orders route directly into sellers' existing Square Online Ordering systems, including point-of-sale and kitchen display systems. Eligible sellers are automatically enrolled without additional setup, technical integration, or fees. Square does not charge marketplace commissions on orders placed through these AI channels. Sellers manage their AI presence through the existing Square Dashboard, while Square syncs business information, menu data, hours, and ordering capabilities in real time.The commission-free approach reflects Square's strong financial position. With a market capitalization of $45.7 billion and revenue of $24.5 billion over the last twelve months, the company has maintained profitability while investing in new technologies. InvestingPro data shows Square earned a "GOOD" financial health rating, supported by liquid assets that exceed short-term obligations. Square is also working with Amazon to integrate sellers into Alexa+ experiences. The company stated it is participating in agentic commerce protocol groups, including the AAIF Agentic Commerce Working Group and the W3C Web Payments Working Group. Square is partnering with Google to develop the Universal Commerce Protocol specification for local food ordering and delivery. Partners Coffee, a Brooklyn-based coffee brand, participated in developing the integrations. "What Square has built not only allows our team to continue offering analog, experiential moments; it creates more of them," said Andrew Costaris, Digital VP at Partners Coffee. Square cited research from NielsenIQ indicating that 42% of consumers use AI tools for shopping tasks such as product discovery and comparison. Morgan Stanley research projects that agentic shoppers could drive nearly $385 billion in U.S. ecommerce spending by 2030.According to InvestingPro analysis, Square currently trades below its Fair Value, suggesting potential upside as the company expands into AI-powered commerce. For investors seeking comprehensive analysis, InvestingPro offers detailed Pro Research Reports covering Square and 1,400+ other US equities, transforming complex data into actionable intelligence. Square currently serves more than 4.5 million sellers across search, maps, social, and marketplace channels. In other recent news, Block Inc. has announced the launch of Builderbot, an AI tool designed to expedite software development by coordinating multiple AI agents within the company's codebase. This tool handles over 200,000 operations daily and manages around 1,500 pull requests weekly, streamlining processes such as bug fixes and service migrations. Additionally, Block introduced the Cash App Wand, an NFC-enabled payment accessory that allows users to make purchases without their phone or wallet, enhancing the convenience for Cash App Card holders. In another development, Sherwin-Williams selected Square, a part of Block, as its payment solutions partner for the Sherwin-Williams Digital Alliance Program. This program will provide digital tools and exclusive offers to Sherwin-Williams PRO+ customers across the U.S. and Canada. Analyst firms have also weighed in on Block's prospects; TD Cowen reiterated a Buy rating with a $101 price target, citing product momentum. Meanwhile, Truist Securities raised its price target for Block to $82, reflecting an optimistic profit outlook and increased gross profit estimates for both the Square and Cash App segments. These developments highlight the company's ongoing innovations and the positive sentiment among analysts regarding its financial trajectory. This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.