‘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.
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
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.
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 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 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.