Log in
E-mail
Password
Show password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Square launches small business banking

07/20/2021 | 01:26pm EDT
An advertisement for the Square payment processor is seen outside a vendors site along the High Line in New York

(Reuters) - Square Inc, the company led by Twitter Inc CEO Jack Dorsey, is launching banking services for small businesses, as it continues to grow beyond payments processing.

Square Banking will offer small businesses savings and checking accounts, as well as its existing lending offering which has been renamed Square Loans, the San Francisco-based company said on Tuesday.

Square Checking will have no account minimums, overdraft fees, or recurring fees and saving accounts will offer a 0.5% annual percent yield on deposits.

Square hopes its new checking and savings accounts, which build upon its debit card offering, will be attractive to small businesses who have struggled to gain access to more mainstream banking services, said Christina Riechers, Square Banking's head of product.

"There is no monthly fee so we see this as having high potential to get folks into more formalized business banking," Riechers said in an interview.

Deposits collected from small businesses will be lent back through Square Loans, she said.

The new services come following the launch of the company's industrial bank, Square Financial Services, which began operations in March after completing the charter approval process with the Federal Deposit Insurance Corporation (FDIC) and the Utah Department of Financial Institutions.

The industrial bank is part of efforts by Square to expand its revenue stream beyond facilitating card payments for small businesses.

The company's consumer business Cash App has been booming, with first quarter revenue excluding bitcoin investing up 139% year on year to $529 million.

While initially, only small business deposits will be brought under the Square Financial Services umbrella, over time the company will look to have the bank work across its range of products and services, a spokesman said.

The renamed lending business will continue to offer loans to sellers based on data from their transactions.

The business, previously called Square Capital, saw revenues drop during the pandemic, with the company pausing its main loan offering for small businesses to focus instead on offering government-funded Paycheck Protection Program loans.

Since restarting lending the company says it has seen volumes recovering.

(Reporting by Anna Irrera; editing by Jason Neely)

By Anna Irrera


ę Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
BITCOIN - EURO 1.89% 37231.85 Real-time Quote.54.35%
INDUSTRIAL BANK CO., LTD. -1.65% 17.92 End-of-day quote.-14.14%
Latest news "Economy & Forex"
05:35pUK's Labour would target online firms to help high street retailers
RE
04:32pNEW ZEALAND INLAND REVENUE : Income tax return credit transfer requests not being completed
PU
04:25pBP says nearly a third of its UK fuel stations running on empty
RE
03:51pCanada foreign minister says eyes wide open when it comes to normalizing China ties
RE
03:43pBritish PM to consider using army to supply fuel stations - Guardian
RE
03:22pU.s. cdc says delivered 471,814,235 doses of covid-19 vaccine as of sept 26
RE
03:21pU.s. cdc says 2.66 mln people received an additional covid-19 vaccine dose since august 13, 2021
RE
03:21pU.s. cdc says administered 390,114,328 doses of covid-19 vaccine as of sept 26 vs 389,372,689 doses administered as of sept 25
RE
03:20pU.s. cdc says 213,456,787 individuals have received at least one dose of covid-19 vaccine as of sept 26 vs 213,177,462 individuals as of sept 25
RE
03:19pU.s. cdc says 183,670,870 individuals have been fully vaccinated against covid-19 as of sept 26 vs 183,353,326 individuals as of sept 25
RE
Latest news "Economy & Forex"