Square Launches Square Banking Suite for Small Business Owners

Over the past few years, Square has expanded from being a small business point of sale solution to offering a variety of financial services to consumers and business owners alike. Now, the company is furthering those efforts by once again focusing on the needs of small business owners. Following the debut of Square Financial Services — Square’s industrial bank — in March, the FinTech recently rolled out Square Banking.

Square Banking includes two small business deposit accounts: Square Savings and Square Checking. The former will include such features as automated savings. As the company notes, the platform will offer “customizable folders,” allowing users to save for specific goals or obligations, such as purchasing new equipment or setting money aside for taxes. Additionally, these savings accounts currently earn 0.5% APY.

As for Square Checking, the account builds upon the growing popularity of the Square Card debit card for small business owners that it launched in 2019. According to Square, the number of active Square Card customers increased 140% in 2020 while the average balance stored on such cards during the same time increased by 250%. Now, Square Checking will continue to give Square sellers instant access to their funds via the debit card while also allowing them to send or receive ACH transfers, use their funds to fulfill Square Payroll, and more. Plus, businesses will soon be able to deposit checks into their account using the Square Point of Sale app.

Both the Square Savings and Square Checking accounts carry no account fees and also have no minimum deposits, no balance requirements, no overdraft fees, etc. Business banking customers will also be able to instantly transfer funds between their Savings and Checking. Meanwhile, the company reports that, soon, Square Loans — formerly Square Capital — will be accessible via Square Checking once loans are approved.

In a statement regarding Square Banking, the platform’s Head of Product Christina Riechers said, “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.” Riechers continued, “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.”

Even as Square’s operations diversify to include consumer debit cards, stock trading, and even Bitcoin, it’s encouraging to see that the company hasn’t lost sight of the small owners that helped make the FinTech what they are. While there are several digital small business accounts on the market, the integrations that Square can offer could be appealing to those already in the “ecosystem.” In turn, if Square Banking proves to be popular with business owners, it could help further solidify them as loyal customers — making this platform a potential win-win.

Author

Jonathan Dyer

I'm a small town guy living in Los Angeles looking to make solid financial decisions. I write for a number of finance websites, including HuffingtonPost and Business2Community. I founded DyerNews.com in 2015 to focus on personal finance and the emerging FinTech markets.

Other Articles by Jonathan Dyer

Bilt and Point.Me Partner for Award Flight Search Integration

With several credit cards, customers can earn points that can then be transferred to various travel programs and redeemed for flights or hotel bookings. Unfortunately, finding and booking the best award travel deals isn't always as straightforward as one might assume. To assist with that, Bilt has unveiled a new integration with Point.Me that will help its rewards members search for award flights on airlines that participate in Bilt's transfer...

Zurp Raises $5 Million for Creator Experience Rewards Credit Card

A FinTech looking to marry credit card rewards with the creator economy has just closed a fresh round of funding. This week, Zurp announced that it had raised $5 million to create a "credit card for experiences." New Form, MAGIC Fund, Launchpad VC, OVO Fund, Darling Ventures, and Animal Capital all participated in the pre-seed fund along with a number of strategic investors. Zurp is a startup looking to create...

U.S. Bank to Launch Business Altitude Connect Credit Card

U.S. Bank is set to expand its small business credit card line-up. Recently, the bank announced the impending launch of the new Business Altitude Connect card. Applications for the new product are expected to open next month. In terms of rewards, Business Altitude Connect cardholders can earn 5x points on hotel and car rentals booked directly in the Rewards Center. Meanwhile, other travel purchases, such as airfare and hotel bookings, will...