Square launches debit card for businesses

Square continues to spread its tentacles into the banking world through the launch of a debit card for businesses that gives sellers real-time access to funds.

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Square launches debit card for businesses

Editorial

This content has been selected, created and edited by the Finextra editorial team based upon its relevance and interest to our community.

The Jack Dorsey-founded mPOS pioneer says that the Square Card will give small businesses more flexibility when it comes to accessing and managing their funds by eliminating the time between making a sale and having the money available to spend.



The Square Card can be used anywhere Mastercard debit cards are accepted, while purchase activity can be seen alongside a record of sales in Square Dashboard and Square Point Of Sale. The card also encourages commerce among the small business community by offering sellers a 2.75% instant discount on purchases made at other Square sellers.

Alyssa Henry, seller lead, Square, says: "As sellers make crucial spending decisions, we know that fast access to funds - and the ability to put proceeds from sales to use immediately - can help with overall cash flow management.

"Small businesses have to be nimble. They don’t have the time to wait for funds to clear a bank account, or the resources to easily reconcile personal versus business expenses. Square Card addresses these pain points, and further extends Square’s ecosystem of products and services for small businesses."

Square - which already offers a Visa debit card aimed at consumers that is linked to its Cash App - and has made no secret of its desire to strengthen its challenge to the banking establishment. Last month, the company refiled an application for a bank charter which would let it hold federally insured customer deposits.

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Comments: (1)

A Finextra member 

"The card also encourages commerce among the small business community by offering sellers a 2.75% instant discount on purchases made at other Square sellers."

Seems great as a headline grabber, but I guess the rest of the merchant community will be paying for this through the extortionate card interchange fees on commercial cards! I wonder whether they'd be offering this if the interchange fees for commercial cards were regulated in the same way as consumer cards. I doubt it. The European Commission really missed an opportunity here.

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