Square Launches Credit Card, New Loan Options, Early Deposit Access

Square now offers its U.S. sellers a credit card, new loan options and early deposit access.

These new tools are designed to meet sellers’ financing and cash flow needs and empower them to more efficiently manage their business finances, the commerce solutions provider said in a Wednesday (June 28) press release.

“We’re expanding what Square Banking can provide to sellers, regardless of their size, to ensure they have the tools needed to grow their businesses, smooth out cash flow, and reduce the complexity of managing their inflows and outflows,” Christina Riechers, general manager of Square Banking, said in the release.

The new Square Credit Card, which is now in beta, features a credit limit based on the sales the seller processes through Square, has no late fees or annual fees, and rewards the seller’s spending with free card processing, according to the release. The card runs on the American Express network.

Square has also added to its Square Loans product the options to repay loans on a fixed monthly schedule and to use external data to improve the size of the loan offer, the release said. These options are now in beta.

In a third new offering, Square now offers early deposit access to Square Checking sellers, allowing them to receive funds made through off-platform channels up to two days quicker and to consolidate their revenue in a single place, per the release.

“Square Banking’s integrated suite of software and financial services was designed to help small businesses gain efficiency and peace of mind when it comes to managing their finances,” Riechers said in the release.

This news follows Square’s launch in April of nearly 100 features designed to offer sellers a way to enhance their revenue at a time when small and medium-sized businesses (SMBs) are feeling pinched.

During the most recent earnings call of Block, the parent company of Square, CEO Jack Dorsey said the Block/Square ecosystem has potential for further penetration in the retail, restaurants and beauty verticals.

“The key differentiator to our mind is our ecosystem of tools,” Dorsey said during the May 4 call. “And it’s not just about any one particular vertical but how everything works together ultimately.”