The square is launching a new free banking service on Tuesday, which relates to the payment and sales outlets the company already offers to small businesses. Square bank combines checking accounts, savings accounts and Square ‘s existing small business loans (now called Square Loans) into a package that the company claims is both fair and readily available.
In terms of features, Square’s new savings account can automatically reserve money for every sale made on the Square platform. Square Savings also allows users to create custom folders to achieve specific goals. The funds in the Square Checking account are immediately available for payroll and other payments with a Square debit card, and Square says there are no minimum account amounts, overdelivery fees, or recurring payments in its accounts.
Square says Square loans are offered based on the past sales history of a small business owner through the platform instead of credit points. The company hasn’t made any dramatic changes to its loan service (formerly Square Capital), but users can repay their loans as a percentage of every Square area sale, and Square says that in the future, loans will be available as soon as it is approved.
Given banking operations already baked into Square’s consumer Cash app, it makes sense for it to go entirely to its original customer base. The near-closed loop of making payments through Square, keeping money in a Square account and then using the money in a Square debit card also keeps business owners simple, provided they’re comfortable putting all their eggs in one basket.
You can register your small business free Square Banking account today.