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

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”

Member Exclusive, Podcasts

Inside Cross River’s ecosystem of some of the best fintech brands

  • Cross River combines tech and banking to power brands like Affirm, Coinbase, Upstart, Upgrade, and Stripe.
  • Chief strategy officer Karan Mehta joined us at The Big Bank Theory Conference to discuss how Cross River’s technology enables the delivery of innovative financial solutions to millions of consumers and businesses.
Zachary Miller | December 03, 2021
Member Exclusive, The Customer Effect

‘New, different, and easy to say’: How fintechs go about choosing their names

  • Standing out as a company in an industry as fast-growing as fintech is no easy task.
  • Finding the right brand name can be a make-or-break for a lot of aspiring startups.
Rivka Abramson | December 02, 2021
Member Exclusive, Podcasts

‘Don’t let any legacy tie you down’: How Piermont Bank blends humans and technology to service midmarket SMBs

  • Piermont Bank serves mid market SMBs with a hybrid blend of digital and human bankers.
  • CEO Wendy Cai-Lee joins us on the podcast to talk about building a bank that addresses SMB pain points.
Zachary Miller | December 01, 2021
Data Snacks, Member Exclusive

Consumers may not get crypto, but they are buying it

  • With almost 2 in 10 people in the US owning crypto, crypto popularity continues to climb.
  • But crypto knowledge seems to fall quite a bit behind crypto optimism. Only 4% of people in the US can pass a crypto literacy quiz.
Rivka Abramson | November 29, 2021
Member Exclusive

‘It doesn’t happen overnight’: How Wise is expanding its banking relationships internationally

  • Wise may have shortened its name, but its roadmap continues to expand.
  • At Tearsheet’s Big Bank Theory Conference, Lindsey Grossman, director of product, and Ryan Zagone, head of Americas, talked about how the company is leveraging APIs to accelerate growth.
Rivka Abramson | November 23, 2021
More Articles