US-based payments company Square has introduced banking services for small businesses as it further diversifies its portfolio.
The new offering is called Square Banking and includes a suite of financial products purpose-built for small businesses.
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Notably, the launch comes around three months after Square Financial Services commenced its services.
Square Banking: Details
Square Banking will offer two new deposit accounts- Square Savings and Square Checking. It will also include an existing lending offering now called Square Loans.
FDIC-insured Square Savings accounts will enable the businesses to build cash reserves. It will help them to organise savings in different folders to meet priorities. Square Savings accounts offer a 0.5% interest and will have no minimum deposits, balance requirements, or account fees.
Square Checking, in partnership with Sutton Bank, will offer an FDIC-insured business checking account. The account will offer instant access to card sales that the businesses process via Square. These accounts also carry no charges.
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By GlobalDataThe account holders can transfer funds between their Square Savings and Square Checking accounts at no cost.
The banking services will work seamlessly with Square’s ecosystem of solutions such as payments and Square Payroll.
Quote:
Square Banking Head of Product Christina Riechers said: “Small businesses are the heartbeat of our communities and our economy. From our earliest days, Square has focused on building easy-to-use tools and services to empower entrepreneurs to succeed on their own terms.
“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 centre.
“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 personalised financing offerings.”
