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Square launches credit card and new cash flow management products

Thursday 29 June 2023 10:53 CET | News

Square has announced the launch of new banking and spend management solutions for US sellers, including new credit tools and features to simplify cash flow management.

 

Square has announced the launch of new banking and spend management solutions for US sellers, including new credit tools and features to simplify cash flow management.

Augmenting sellers with new credit tools

The Square Credit Card, 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 programme that helps them reinvest back in their business. With no late 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.

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 sellers, the company says.

Simplifying cash flow and spend management

Available 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 in 2023, 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 deputise team members to purchase items like ingredients and inventory for the business.

Efficient management of business finances

For nearly a decade, Square has worked to expand access to capital through Square Loans, facilitating more than USD14 billion in small business loans to more than half a million sellers, as per the press release. 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 USD 1 billion using their Debit Cards, a 20% increase when compared to the same period of 2022. 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 2023, sellers had more than USD 150 million set aside in their Square Savings accounts.


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Keywords: lending, credit card, cash flow, spend management, product launch
Categories: Banking & Fintech
Companies: Square
Countries: United States
This article is part of category

Banking & Fintech

Square

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