{"id":4393,"date":"2019-01-23T18:41:41","date_gmt":"2019-01-23T18:41:41","guid":{"rendered":"https:\/\/www.paymentfacilitator.com\/?p=4393"},"modified":"2022-02-24T22:18:13","modified_gmt":"2022-02-24T22:18:13","slug":"with-new-debit-card-square-continues-inching-into-banking-territory","status":"publish","type":"post","link":"http:\/\/infinicept.com\/payment-facilitator\/archive\/with-new-debit-card-square-continues-inching-into-banking-territory\/","title":{"rendered":"With New Debit Card, Square Continues Inching into Banking Territory"},"content":{"rendered":"\n

Square\u2019s announcement that it is launching a debit card for its small business customers \u2013 just a day after two financial services giants announced plans to merge \u2013 has brought the threat legacy providers feel from fintech disruptors back to the forefront.<\/strong><\/p>\n\n\n\n

Last week, Square launched<\/a>\nits new Square Card, a free debit Mastercard that makes funds available to\nSquare sellers as soon as they make a sale. The cards can be used anywhere\nMastercard is accepted. <\/p>\n\n\n\n

The card is linked to the business\u2019s point of sale, the\ncompany said<\/a>. According\nto the card terms<\/a>,\nthe funds are stored in a prepaid account held at Sutton Bank. The business can\nchoose to transfer money in its own linked bank account in one to two business\ndays for no fee, or immediately upon request for a 1% fee.<\/p>\n\n\n\n

\u201cAs sellers make crucial spending decisions, we know that\nfast access to funds — and the ability to put proceeds from sales to use\nimmediately — can help with overall cash flow management,\u201d Alyssa Henry, Seller\nLead at Square, said in a press release. <\/p>\n\n\n\n

\u201cSmall businesses have to be nimble. They don\u2019t have the\ntime to wait for funds to clear a bank account, or the resources to easily\nreconcile personal versus business expenses. Square Card addresses these pain points,\nand further extends Square\u2019s ecosystem of products and services for small\nbusinesses,\u201d she said.<\/p>\n\n\n\n

The card also offers reporting capabilities that separate\npersonal and business expenses, and sellers can export transaction data from\ntheir Square Dashboard for accounting purposes, the company said.<\/p>\n\n\n\n

The news comes less than a week after Fiserv announced its\nacquisition of First Data, as if to further emphasize the competitive pressures\nSquare has placed on traditional financial services.<\/p>\n\n\n\n

According to CNBC, Fiserv CEO Jeffery Yabuki acknowledged<\/a>\nthis pressure on the company\u2019s earnings conference call: <\/p>\n\n\n\n

\u201cA lot of banks especially in the community spaces are\nworried about companies like Square,\u201d Yabuki said. \u201cAnd what do you do where\nSquare has a growing, rapidly growing, point-of-sale lending business and\nthat\u2019s going to take money out of the revenue line of the banks.\u201d<\/p>\n\n\n\n

The new card is just Square\u2019s latest foray into bringing\nmore of the financial services traditionally offered by financial institutions\nto its sellers. It filed<\/a>\nfor an industrial loan company license for the second time in December. It had pulled\nits first application last summer, saying that it planned to address\nregulator concerns and try again.<\/p>\n","protected":false},"excerpt":{"rendered":"

Square\u2019s announcement that it is launching a debit card for its small business customers \u2013 days after two financial services giants announced plans to merge \u2013 has brought the threat legacy providers feel from fintech disruptors back to the forefront.<\/p>\n","protected":false},"author":7,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_FSMCFIC_featured_image_caption":"","_FSMCFIC_featured_image_nocaption":"","_FSMCFIC_featured_image_hide":"","footnotes":""},"categories":[1015],"tags":[308,310,502,828,830],"class_list":["post-4393","post","type-post","status-publish","format-standard","hentry","category-archive","tag-first-data","tag-fiserv","tag-mastercard","tag-square","tag-square-card"],"acf":[],"_links":{"self":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts\/4393","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/comments?post=4393"}],"version-history":[{"count":2,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts\/4393\/revisions"}],"predecessor-version":[{"id":8325,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/posts\/4393\/revisions\/8325"}],"wp:attachment":[{"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/media?parent=4393"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/categories?post=4393"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/infinicept.com\/payment-facilitator\/wp-json\/wp\/v2\/tags?post=4393"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}