SAN FRANCISCO—Square is launching banking services for small businesses as it seeks 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, Reuters reported.
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 which have struggled to gain access to more mainstream banking services, Christina Riechers, Square Banking's head of product, told Reuters.
"There is no monthly fee, so we see this as having high potential to get folks into more formalized business banking," Riechers told the news outlet.
Deposits to be Lent Back
Deposits collected from small businesses will be lent back through Square Loans, she said.
The new services come following the launch of the company's industrial bank, Square Financial Services, which began operations in March after completing the charter approval process with the FDIC and the Utah Department of Financial Institutions.