Square Launches Square Banking Targeted at Small Businesses

Customer using touch screen to make payment at a coffee shop.
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Financial services and digital payments company Square launched Square Banking, a suite of financial products purpose-built to help small business owners manage their cash flow, the company announced.

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The new service combines a checking account, savings accounts, debit cards and loans and follows Square’s industrial bank, Square Financial Services, which began operations in March, according to a statement.

“Small businesses are the heartbeat of our communities and our economy. From our earliest days, Square has focused on building easy-to-use tools and services to empower entrepreneurs to succeed on their own terms,” Christina Riechers, Square Banking’s Head of Product, said in a statement. “Historically, small businesses have had to contend with numerous hurdles while trying to access vital financial services that are often readily available to larger companies. With Square Banking, we’ve reimagined the financial system for small business owners with their cash flow needs at the center.

“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.”

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Square Savings accounts have an annual percentage yield (APY) of 0.50% but that will only apply until December 31, 2021.

Square Checking will provide routing numbers, has no account minimums, overdraft fees or recurring fees.

As for Square Loans, it will increase access to credit “with proactive loan offers that are uniquely tailored to their business needs and can be automatically repaid through a percentage of their daily Square sales,” according to the statement.

See: Square Invests $5 Million in Blockstream To Build Solar-Powered Bitcoin Mining Facility
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Last month, the company said it would invest $5 million in blockchain technology company Blockstream Mining, to build an open-source, solar-powered bitcoin mining facility at one of Blockstream’s U.S. sites.

Blockstream’s facility will be a “proof-of-concept for a 100% renewable energy Bitcoin mine at scale, with the economics of the build-out — including operational costs and ROI — made open to the public,” according to the statement at the time.

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About the Author

Yaël Bizouati-Kennedy is a former full-time financial journalist and has written for several publications, including Dow Jones, The Financial Times Group, Bloomberg and Business Insider. She also worked as a vice president/senior content writer for major NYC-based financial companies, including New York Life and MSCI. Yaël is now freelancing and most recently, she co-authored  the book “Blockchain for Medical Research: Accelerating Trust in Healthcare,” with Dr. Sean Manion. (CRC Press, April 2020) She holds two master’s degrees, including one in Journalism from New York University and one in Russian Studies from Université Toulouse-Jean Jaurès, France.

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