Square to take on incumbents with business banking accounts

Square to take on incumbents with business banking accounts

News
July 20, 2021 by J.D. Smith
18
Square is to take on the nation’s big banks with the launh of Square Banking, providing small businesses with a full suite of checking and savings accounts, payment cards and loans. Coming on the heels of Square’s industrial bank, Square Financial Services – which began operations in March – Square Banking consists of three core

Square is to take on the nation’s big banks with the launh of Square Banking, providing small businesses with a full suite of checking and savings accounts, payment cards and loans.

Coming on the heels of Square’s industrial bank, Square Financial Services – which began operations in March – Square Banking consists of three core products: two new deposit accounts, Square Savings and Square Checking, join the firm’s existing lending capability, now called Square Loans.

Christina Riechers, Square Banking’s head of product, says: “Historically, small businesses have had to contend with numerous hurdles while trying to access vital financial services that are often readily available to larger companies. With Square Banking, we’ve reimagined the financial system for small business owners with their cash flow needs at the center. We’re introducing fair, accessible financial services that connect directly with our sellers’ payments, helping them unlock instant access to their sales, automate their savings, and receive personalized financing offerings.”

The savings account will enable users to set aside funds for future goals via customisable folders, like purchasing new equipment or paying quarterly tax obligations. The FDIC-insured accounts offer a 0.5% annual percentage yield, and have no minimum deposits, balance requirements, or account fees.

The checking account will be linked to the firm’s business debit card that was launched in January and will provide instant access to funds from sales handled via Square. A future update will enable users to to deposit checks via the Square Point of Sale app, helping them further consolidate business funds into one place.

Square Loans continues to give sellers increased access to credit with proactive loan offers that are uniquely tailored to their business needs and can be automatically repaid through a percentage of their daily Square sales. Soon, sellers will also be able to instantly access their Square Loan from their Square Checking account once they are approved for a loan.