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Square launches Square Banking service for small business owners

Square launches Square Banking service for small business owners
Square launches Square Banking service for small business owners

Square, a US-based digital payment and financial services company, has reportedly launched its new product, Square Banking, which combines services like savings accounts, checking accounts, loans, and debit cards. Square Banking aims to persuade small businesses that it is much easier to manage all of their money matters through Square.

According to reports, Square, which was originally concentrated on payment processing, released a debit card for its business clients in 2019. Through this, the company provided business owners a way to spend the money they receive through Square payments without having to first transfer it to a separate bank account.

With the launch of Square Banking, the firm is expanding its service beyond debit cards by including savings and checking accounts. When a business makes a sale, the owner of that business can withdraw cash from its new Square checking account. No credit checks, no minimum balance, and no monthly fees would be needed there.

Business owners can also now open a savings account with Square. The firm is capitalizing on the fact that it handles companies’ sales through its proprietary payment products. Through the service, business owners can also select a portion of their Square sales earnings so they can save some every day without needing to worry about it. The service would also allow users to make separate folders for various company needs, such as new machinery, or sales taxes, among others.

Right now, the payment company provides a 0.50% annual percentage yield (APY). However, this rate is only assured until 2021. Transactions between business owner’s saving accounts and their Square checking accounts are absolutely free and quick. Moreover, their saving accounts are FDIC insured as well.

Small companies that currently use Square to handle payments for in-person and online sales will probably be highly interested in Square Banking. These clients are likely to have a separate company bank account that is not managed by Square. However, if Square continues to add capabilities to its financial offerings, they may find that they are using those separate accounts less and less.

Source credit: https://techcrunch.com/2021/07/20/square-launches-business-bank-accounts/

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Sunil Jha

Sunil Jha has been a part of the content industry for close to two years. Having previously worked as a voice over artist and sportswriter, he now focuses on writing articles for newsorigins.com, across a slew of topics, ranging from technology to trade and finance. With a business-oriented educational background, Sunil brings forth the expertise of deep-dive research and a strategic approach in his write ups.