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.
close

Email a Friend

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.”

0 comments on “Legging into banking, Square introduces debit card for businesses”

Payments, Podcasts, What's Happening in Payments Podcast

Power of Payments Ep. 9: Balance’s Bar Geron on why B2B payments are “stuck in the stone age”

  • Bar Geron, co-founder and CEO of Israeli firm Balance, joins host Ismail Umar on this week’s podcast.
  • He talks about the importance of bringing B2B payments online, BNPL for business, as well as other B2C trends that are slowly being adopted in B2B transactions.
Ismail Umar | June 30, 2022
Member Exclusive, Payments

Payments Briefing: Is the ‘Apple Pay Later’ hype warranted?

  • This week, we review the hype around Apple Pay Later and try to determine how much of it is justified.
  • We also look at Square’s move to bring Afterpay to in-store purchases, making it even easier to pay in four – and how this greater ease could lead to overspending and growing consumer debt.
Ismail Umar | June 23, 2022
Member Exclusive, Payments

How the global microchip shortage is affecting the payments industry

  • While chip-based payment cards face the biggest threat, experts say the only aspect of payments immune to the shortage is physical currency.
  • As banks look to address the problem, one of the solutions being discussed is extending payment cards' expiration dates.
Subboh Jaffery | June 20, 2022
Payments, Podcasts, What's Happening in Payments Podcast

What’s Happening in Payments Ep. 8: Klarna and the future of BNPL, PayZen’s ‘Care Now, Pay Later’, and Mastercard’s ‘Smile to Pay’ system

  • This week, we discuss whether BNPL offers a sustainable business model for providers, and whether it’s even viable as a standalone business.
  • We also talk about PayZen’s ‘Care Now, Pay Later’ offering, as well as Mastercard’s ‘Smile to Pay’ system, and what it tells us about the future of privacy and security in payments.
Ismail Umar | June 17, 2022
Payments, Sponsored

International remittances: A money movement lifeline ripe for digitization

  • Digital transformation is simplifying how people move money around the world, yet barriers to international P2P transfers remain.
  • In honor of International Day of Family Remittances, Visa shares four tips for how policymakers can better streamline digital remittances.
Visa | June 16, 2022
More Articles