Square launches small business banking – Reuters

SourceReuters
SectorEconomy
CountryMiddle east

July 20 (Reuters) – Square Inc (SQ.N), the company led by Twitter Inc (TWTR.N) CEO Jack Dorsey, is launching banking services for small businesses, as it continues to grow beyond payments processing.

Square Banking will offer small businesses savings and checking accounts, as well as its existing lending offering which has been renamed Square Loans, the San Francisco-based company said on Tuesday.

Square Checking will have no account minimums, overdraft fees, or recurring fees and saving accounts will offer a 0.5% annual percent yield on deposits.

Square hopes its new checking and savings accounts, which build upon its debit card offering, will be attractive to small businesses who have struggled to gain access to more mainstream banking services, said Christina Riechers, Square Banking’s head of product.

“There is no monthly fee so we see this as having high potential to get folks into more formalized business banking,” Riechers said in an interview.

Deposits collected from small businesses will be lent back through Square Loans,...read more...