Member Exclusive

‘With Square Banking, we’ve reimagined the financial system for small business owners’: Square launches Square Banking

  • Square received an industrial bank charter.
  • Now the financial technology firm has released a suite of saving, payments, money movement, and financing products.
close

Email a Friend

‘With Square Banking, we’ve reimagined the financial system for small business owners’: Square launches Square Banking

On the heels of receiving an industrial banking charter in March, Square has released a suite of financial tools for small businesses. With Square Banking, SMBs can better manage their cash flow, getting savings, checking and financing in one integrated account.

Square Banking ties 3 products together

https://youtu.be/KReNUqEQ648

With its buyer ecosystem around the Cash App, Square provides access to financial tools for underbanked populations. Square Banking marks the beginnings of the company’s journey to provide more banking solutions to small businesses.

"With Square Banking, we’ve reimagined the financial system for small business owners with their cash flow needs at the center," said Christina Riechers, Square Banking’s Head of Product. "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."

Square Banking consists of three modules: savings, checking, and financing.

square banking
Source: Square

Square Savings

Powered by Square Financial Services, Square Savings offers small business owners a way to build their cash reserves.

  • Using automated savings, Square Savings helps SMB owners set savings on autopilot with customizable folders that sellers can use to save for specific goals and priorities, like making payroll, purchasing new equipment or paying quarterly taxes.
  • Square Savings offers FDIC-insured accounts with a 0.5% annual percentage yield, and have no minimum deposits, balance requirements, or account fees.

Square Checking

Square Checking extends the company’s existing business banking tools. In partnership with Sutton Bank, it's an FDIC-insured business checking account with instant access to card sales processed via Square.

  • Sellers can immediately spend their funds with their Square Debit Card, send and receive money via ACH with new account and routing numbers, or use their balance to pay their teams with Square Payroll.
  • Square Checking has no account minimums, overdraft fees or recurring fees.
  • Sellers can instantly move funds between their Square Savings and Square Checking accounts at no cost.
  • Sellers will soon be able to deposit checks via the Square Point of Sale app.

Since Square first introduced the Square Debit Card, adoption has increased every quarter. In 2020, the number of active Square Card sellers increased 140% year over year, and the total balance stored by these sellers increased 250% in the same time period.

Square Loans

Square Capital -- now Square Loans -- gives sellers access to credit with proactive loan offers tailored to their business needs.

  • Square's loans can be automatically repaid through a percentage of their daily Square sales.
  • Soon, sellers will be able to access their Square Loans from their Square Checking account once they are approved for a loan.

Since beginning operations, Square Capital – now Square Loans – has facilitated more than $9 billion in small business loans and Paycheck Protection Program loans to more than 460,000 Square sellers, with an average loan size of $6,750.

0 comments on “‘With Square Banking, we’ve reimagined the financial system for small business owners’: Square launches Square Banking”

10-Q, Member Exclusive

Back to the future: Jack Dorsey secures the reins of Square once again

  • Can Jack Dorsey's fresh focus on Square help boost stock returns and eventually uplift the Square business after CEO Alyssa Henry steps down?
  • The IPO Index witnessed moderate gains last week.
Sara Khairi | October 02, 2023
10-Q, Member Exclusive

Behind Citizens Bank’s evolving strategy in a crowded BNPL market

  • Citizens Pay's Christine Roberts shares insights on how Citizens Pay has evolved since its inception and if it has an edge over fintech BNPL lenders.
  • In other news, Arm and Instacart IPOs could be meaningful for Goldman Sachs to open new doors of revenue and IPO fees for the Wall Street firm.
Sara Khairi | September 25, 2023
10-Q, Member Exclusive

Chasing ambitions: SoFi elevates its game by participating in underwriting the Instacart IPO

  • Underwriting part of the Instacart IPO can be a big shot for SoFi, which went public in 2021 and is best known for student loan refinancing.
  • Also, Wall Street banks added modest gains to the IPO Index last week.
Sara Khairi | September 18, 2023
10-Q, Member Exclusive

Dime Community Bancshares steps into healthcare lending as part of its commercial banking expansion

  • Dime makes a move into the healthcare sector to offer financing solutions and support capital-intensive projects.
  • The CFPB is keeping tabs on Apple’s policy of limiting access to the NFC chip technology that makes Apple Pay the only mobile payment service that utilizes the ‘tap and go’ technology embedded in iOS devices limiting other companies from developing their own tap-to-pay apps for Apple devices.
Sara Khairi | September 11, 2023
10-Q, Member Exclusive

Better.com’s shiny IPO debut: Can the mortgage lender pave its way to become a Wall Street darling?

  • Can Better.com gain Wall Street's respect?
  • Federal Reserve Chair Jerome Powell on Friday warned that additional interest rate increases could be yet to come, as inflation is still above where policymakers feel comfortable.
Sara Khairi | August 28, 2023
More Articles