By: Nick Gambino
Small businesses were once at the mercy of the big banks and credit-lending companies who had no problem charging exorbitant and confusing rates to the little guy who just wanted to take credit card as a payment option. Enter Square and their revolutionary card reader along with a simple and singular processing payment.
Square cut their teeth offering an easy way for businesses, especially small kiosks and the like, to collect credit card payments. Now it seems they’re looking to cut in on another angle by offering checking and savings accounts.
While we don’t have any official word from the company, hints at this new offering can be found in hidden code in the update to the iOS Square app, according to Bloomberg. There are references to both savings and checking accounts, with the latter integrating with the company’s current debit card for businesses. There’s even a name for each of these accounts. They will be known as… Square Checking and Square Savings. Bit anticlimactic but it does the job.
This is an organic and not surprising development as Square was approved for a banking charter and launched Square Financial Services earlier this year. The plan was to encroach on the established banking structure much the way they did with credit card processing.
Square didn’t comment on this hidden code or the company’s move toward offering checking/savings accounts. They did, however, offer a non-confirmation statement that essentially confirms by not denying. If you can follow that thread.
“Our bank, Square Financial Services, began operations in March,” Square said while tap dancing in a response to Bloomberg. “We’ve long said its purpose will be to offer business loan and deposit products.”
Apparently, if this plays out, Square doesn’t intend to charge monthly fees or charge for overdraft or failing to maintain a minimum balance. Money processed through a Square system will be instantly available in the checking account. Savings accounts, in line with current interest rates, will earn .5%, at least through the remainder of 2021. This suggests we should see Square accounts released soon.
I’d keep an eye out for an announcement on Square Checking and Savings in the next month or two.