Payments and banking products work seamlessly
together, providing sellers with a robust solution to manage cash
flow
Today, Square launches Square Banking, a suite of financial
products purpose-built to help small business owners easily manage
their cash flow and get more out of their hard-earned money. Coming
on the heels of Square’s industrial bank, Square Financial
Services, beginning operations in March, Square Banking represents
a major milestone in Square’s continued efforts to expand access to
financial tools for underbanked populations and marks the
beginnings of the company’s journey to provide more banking
solutions to small businesses.
“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,” said Christina Riechers, Square Banking’s Head
of Product. “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.”
Square Banking consists of three core products designed to help
small business owners confidently manage cash flow stress: two new
deposit accounts, Square Savings and Square Checking, join Square’s
existing lending capability, now called Square Loans. By offering
essential banking tools that work seamlessly with Square’s
ecosystem of solutions like payments and Square Payroll, sellers
now have a single home for their entire business, gaining a unified
view of their payments, account balances, expenditures, and
financing options.
Square Savings: Automated Preparation for the Future
Small business owners recognize the value of setting aside
funds, but the day-to-day challenges they face trying to manage
their cash flow can make it difficult to build up a cash buffer.
Square Savings, powered by Square Financial Services, offers small
business owners a simpler way to start or continue building up
their cash reserves.
With automated savings, Square Savings removes the friction from
setting aside funds, enabling sellers to effortlessly save a
percentage of every Square sale they make. To better help
businesses organize their savings, Square Savings also offers
customizable folders that sellers can use to save for specific
goals and priorities, like purchasing new equipment or paying
quarterly tax obligations. These FDIC-insured accounts offer a 0.5%
annual percentage yield1, and have no minimum deposits, balance
requirements, or account fees.
“Cash flow is always top of mind as a small business owner, but
one of the big learnings from the last year and a half is how
important it is to think about my finances in the longer term,
whether that’s a few weeks from now or a few months,” said Susan
Kinser, owner of Troy, Ohio-based Wagmore Pet Salon. “Square
Savings is great because in the background, it’s helping me prepare
for the future, while leaving me free to focus on the day-to-day
needs of my business.”
Square Checking: A Home for Business Finances, Connected to
Payments
Since Square first introduced the Square Debit Card, adoption
has increased every quarter as more sellers seek a way to decouple
their personal and business finances and immediately access and
spend their earned funds. In 2020, the number of active Square Card
sellers increased 140% year over year, and the total balance stored
by these sellers increased 250% in the same time period. Square
Checking builds off the company’s existing business banking tools,
and in partnership with Sutton Bank, offers sellers an FDIC-insured
business checking account that provides instant access to card
sales they process via Square.
With Square Checking, Sellers can immediately spend their funds
with their Square Debit Card, send and receive money via ACH with
new account and routing numbers, or use their balance to pay their
teams with Square Payroll. Square Checking has no account minimums,
overdraft fees, or recurring fees, and sellers are able to
instantly move funds between their Square Savings and Square
Checking accounts whenever they need to, at no cost. Soon, sellers
will also be able to deposit checks via the Square Point of Sale
app, helping them further consolidate business funds into one
place.
Square Loans: Personalized Financing Based on Sales, Not
Credit History
Financing is critical for small businesses looking to grow or
gain better control over their cash flow, and yet, according to the
Federal Reserve, fewer than half of small businesses report that
their credit needs are met. Since beginning operations, Square
Capital – now Square Loans – has facilitated more than $9 billion
in small business loans and Paycheck Protection Program loans to
more than 460,000 Square sellers, with an average loan size of
$6,750. These numbers highlight Square’s ability to reach and serve
small businesses that have been traditionally underserved by
existing lending options.
Square Loans continues to give sellers increased 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. Soon, sellers will also be
able to instantly access their Square Loan from their Square
Checking account once they are approved for a loan.
“There are so many unseen challenges that come with starting and
running a small business, and the ability to easily access fair
financing is a big one,” said Charlene Ruell, the owner of
Vancouver, Washington-based handmade accessories provider Panache.
“The idea of shopping around for a business loan was intimidating,
given my concerns around my personal credit and the fact that I run
a relatively small operation. The personalized financing options
I’ve received from Square Loans have not only helped me invest in
key equipment and inventory, but it also reinforced my conviction
that my business has staying power.”
For more information on Square Banking, please visit
squareup.com/banking
About Square, Inc.
Square, Inc. (NYSE: SQ) builds tools to empower businesses and
individuals to participate in the economy. Sellers use Square to
reach buyers online and in person, manage their business, and
access financing. Square, Inc. has offices in the United States,
Canada, Japan, Australia, Ireland, Spain, Norway, and the UK.
1For Savings accounts, annual percentage yield (APY) of 0.50% or
more will apply until 12/31/2021, after which the APY in effect at
that time will apply and will be subject to change.
All Square Loan numbers reflect metrics through March 31,
2021.
Square Financial Services, Inc. is a wholly owned subsidiary of
Square, 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.
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