Dive Brief:
- Square is getting ready to offer checking and savings accounts to small-business customers, Bloomberg reported Monday, citing evidence of the plan that appeared in code in a recent update to Square's app for Apple's iPhone and iPad.
- The code indicates Square will not charge monthly service fees, minimum balance fees or overdrafts on its checking account, which will integrate with the company's existing debit card for businesses, according to Bloomberg.
- Square plans to offer a 0.5% interest rate on its savings account through 2021, language in the code indicates. Funds from sales processed through Square will be immediately available to spend in the checking account, Bloomberg reported.
Dive Insight:
The checking and savings accounts, which have not been publicly unveiled, represent the next step in Square's move into banking. The fintech launched its industrial bank in March, nearly a year after the Federal Deposit Insurance Corp. (FDIC) gave Square conditional approval for an industrial loan company charter. That development meant Square Financial Services could originate small-business loans rather than doing so through Salt Lake City-based Celtic Bank, its previous partner.
The company declined to comment to Bloomberg on the new code for its app, which indicates the new products will be called "Square Checking" and "Square Savings." The code also includes links to web pages that are not yet live, advertising the products on Square's website.
"Our bank, Square Financial Services, began operations in March," Square said in a statement. "We've long said its purpose will be to offer business loan and deposit products."
It's unknown when Square plans to launch the checking and savings products, but it could be soon, given their appearance in code. However, details of the products may also change ahead of the launch.
Between the launch of the industrial bank and now, Square has also diversified its product base by buying a majority stake in the music-streaming service Tidal for $297 million in cash and stock.
