Banking expansion comes as Square Checking sees $1 billion in debit card spend through the first five months of 2023
Square today announced the beta launch of new banking and spend management solutions for its U.S. sellers, including new credit tools and features that help businesses simplify their cash flow management and consolidate their finances.
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The Square Credit Card (Graphic: Business Wire)
Meeting the financing and cash flow needs of more sellers
The Square Credit Card¹, running on the American Express network, gives sellers a new, yet familiar tool that provides them with more spending flexibility when they need it and a rewards program that helps them reinvest back in their business. With no late fees or annual fees, the Square Credit Card features a credit limit determined by the sales a seller processes through Square, growing as their business grows, and rewards them with free card processing every time they spend.
Square is also broadening the functionality of its popular Square Loans product. To better serve large sellers, Square is providing these businesses with loans that can be repaid on a fixed monthly schedule, rather than through daily repayments – offering a more predictable repayment schedule – as well as the optional ability to use external data to improve loan offer size.
“Our business has been expanding rapidly over the past couple of years, and keeping pace requires additional spending and investment,” said Magen Bynum, owner of Mississippi-based Magnolia Soap and Bath Company, a multi-location retailer specializing in plant-based soap and beauty products. “The Square Credit Card gives us the spending flexibility we need to continue investing in our growth, and being able to manage it right from Square makes staying on top of our finances that much simpler.”
Both Square Credit Card and the new loan options are currently in beta but have seen strong usage already, including among upmarket sellers. Since these products entered beta, 25% of Credit Card spend and 30% of originations from loans with fixed monthly payments have come from upmarket sellers².
In addition to new credit tools, Square is also introducing more ways for Square Checking sellers to simplify their cash flow and spend management:
- Available today to Square Checking sellers, early deposit access further empowers businesses to simplify their finances by enabling quicker access to ACH deposits. In addition to receiving funds from sales made through off-platform channels like delivery apps and ecommerce marketplaces up to two days quicker, early deposit access helps sellers consolidate their revenue in a single place so they can easily access their money when they need it.
- Coming later this year, sellers will be able to have up to four additional Debit Cards connected to their Checking account, giving co-owners and business partners more flexibility over the way they spend and allowing larger sellers to more easily deputize team members to purchase items like ingredients and inventory for the business.
Empowering sellers to more efficiently manage business finances
For nearly a decade, Square has worked to expand access to capital through Square Loans, facilitating more than $14 billion in small business loans to more than half a million sellers. Similarly, since launching business checking and savings accounts, Square Banking has made it easier for sellers to stay on top of their finances by integrating directly with their flow of payments. Square Checking, which gives sellers instant access to their sales, is now used by hundreds of thousands of sellers monthly. Through the first five months of 2023, sellers using Square Checking spent more than $1 billion using their Debit Cards, a 20% increase when compared to the same period last year³. Additionally, Square Savings continues to help more sellers prepare themselves for future priorities like their expansion plans or quarterly taxes: at the end of May, sellers had more than $150 million set aside in their Square Savings accounts⁴.
“Square Banking’s integrated suite of software and financial services was designed to help small businesses gain efficiency and peace of mind when it comes to managing their finances,” said Christina Riechers, General Manager of Square Banking. “But businesses of all sizes face challenges managing cash flow, and those struggles can become more complex as a business grows, their revenues diversify, and their expenses multiply. We’re expanding what Square Banking can provide to sellers, regardless of their size, to ensure they have the tools needed to grow their businesses, smooth out cash flow, and reduce the complexity of managing their inflows and outflows.”
For more information about Square Banking, visit squareup.com/banking.
Square makes commerce and financial services easy and accessible with its integrated ecosystem of commerce solutions. Square offers purpose-built software to run complex restaurant, retail, and professional services operations, versatile e-commerce tools, embedded financial services and banking products, buy now, pay later functionality through Afterpay, staff management and payroll capabilities, and much more – all of which work together to save sellers time and effort. Millions of sellers across the globe trust Square to power their business and help them thrive in the economy. For more information, visit www.squareup.com.
(1) Square Capital, LLC is a wholly owned subsidiary of Block, Inc., d/b/a Square Capital of California, LLC in FL, GA, MT, and NY. Block, Inc. and Square Capital, LLC are not banks. Square Credit Cards are issued by Celtic Bank, Member FDIC, pursuant to a license from American Express, and may be used wherever American Express is accepted. If approved, APR may vary based on creditworthiness and other factors. Subject to credit approval.
(2) We determine seller size based on annualized GPV from the last 91 days. An upmarket seller generates more than $500,000 in annualized GPV.
(3) All Square Loan, Square Checking, and Square Savings numbers reflect metrics through May 31, 2023. Square Loan numbers exclude PPP figures.
(4) Square Financial Services, Inc. is a wholly owned subsidiary of Block, Inc., All loans and savings accounts are issued by Square Financial Services, Inc., a Utah-Chartered Industrial Bank. Member FDIC. All loans are subject to credit approval. Square Checking is provided by Sutton Bank, member FDIC. Square Debit Card is issued by Sutton Bank, Member FDIC, pursuant to a license from Mastercard International Incorporated, and may be used wherever Mastercard is accepted. Funds generated through Square’s payment processing services are generally available in the Square checking account balance immediately after a payment is processed. Fund availability times may vary due to technical issues. Checking and Savings accounts are FDIC-insured up to $250,000.