Square (SQ) - Get Square, Inc. Class A Report said Tuesday that it was launching Square Banking, a suite of financial products for small business owners, as the technology and credit card payments provider expands its operations.
Shares of the San Francisco company were up 1.9% to $238.16 on Tuesday.
The company said Square Banking will consist of the existing service Square Loans - - formerly Square Capital - and two new deposit accounts, Square Savings and Square Checking.
Square Loans has facilitated more than $9 billion in small business loans and Paycheck Protection Program loans to more than 460,000 Square sellers, with an average loan size of $6,750, the company said.
Square Checking builds off the company’s existing business banking tools, and in partnership with Sutton Bank, offers sellers an FDIC-insured business checking account.
Square Checking will work with the company's Square Debit Card, which was launched in 2019, and has no account minimums, overdraft fees, or recurring fees, the company said.
Square Savings, powered by Square Financial Services, is intended to offer small business owners a simpler way to start or continue building up their cash reserves.
"With Square Banking, we’ve reimagined the financial system for small business owners with their cash flow needs at the center," Christina Riechers, Square Banking’s Head of Product, said in a statement. "We’re introducing fair, accessible financial services that connect directly with our sellers’ payments, helping them unlock instant access to their sales, automate their savings, and receive personalized financing offerings."
Bloomberg reported in May that Square was looking to get into commercial and retail banking.
Square Financial Services, the company's industrial bank, began operations in March.
Last week, Square founder and CEO, Jack Dorsey announced the creation of a new Square division dedicated to building decentralized financial services using Bitcoin.