Payments

Legging into banking, Square introduces debit card for businesses

  • Consumers have had access to a Square debit card.
  • Now, merchants can spend their cash without first moving it to a bank account.
Legging into banking, Square introduces debit card for businesses

Square merchants no longer need to move cash that accumulates from sales into a bank account in order to spend it. With Square’s new debit card,  merchants can spend their business’ money using plastic anywhere Mastercard debit cards are accepted.

Why this is important: This product takes the payments company one step closer to providing banking services. Remember, Square re-applied for a banking license in December 2018.  Without a banking license, the money that accrues in these accounts isn’t really ‘deposits’ in the classic sense and aren’t insured by the FDIC. With easy ways to move money in and out of Square, merchants can now pretty much live within the company’s ecosystem.

Payments is heating up: Square’s growing influence in the business payments space is a concern for incumbents and may have been a driving force behind Fiserv’s acquisition of First Data this week. First Data has its own cloud payments service, Clover, that competes directly with Square.

“The Square card extends our ecosystem by offering instant deposit,” Alyssa Henry, seller lead at Square said on a call with reporters. “You don’t need to transfer to a bank account, which is one less thing for a seller to have to think about.”

Payments, Podcasts

Splitit’s Brad Paterson: ‘The state of the industry reminds me of the early days of PayPal’

  • Splitit enables consumers to make installment payments on their purchases.
  • New CEO Brad Paterson joins us to discuss his company's growth strategy.
Zack Miller | February 20, 2020
Payments

Amex’s Stewart Kendall: ‘81% of our cardmembers are now engaged with us digitally’

  • As Gen Z and Millennial users further engage with the brand, the mobile app experience has evolved.
  • Kendall, the head of Amex's mobile app, joins us to discuss his firm's mobile strategy.
Zack Miller | February 18, 2020
Payments

‘A dollar saved is 100x better than a reward’: Ramp launches corporate card

  • With Brex's success, it wasn't long before more competitors joined the corporate credit card space.
  • New entrant Ramp has a strong team, a focus on curbing spending waste, and now $25 million in the bank.
Zoe Murphy | February 12, 2020
Payments

Pay Fresh: How Subway is upgrading its payments experience

  • Subway wanted to upgrade its payment experience across channels.
  • The company is now working with Adyen to provide omnichannel payments across markets.
Michael Deleon | January 29, 2020
Payments, Podcasts

Extend’s Andrew Jamison: ‘There’s a broad disconnect between what happened in ERP with what’s going on in financial technology’

  • Managing B2B products at Amex, Andrew Jamison saw card issuance didn't serve the way the economy was headed.
  • He founded Extend, which works with banks' existing technology to issue virtual cards.
Michael Deleon | January 17, 2020
More Articles