Jack Dorsey’s Square starts its own bank for merchants

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Square, Jack Dorsey’s financial firm, which also owns the Cash mobile payment service, has just opened its own bank. According to the company, it will be called Square Financial Services and will launch later this year.

The bank will operate as a separate entity from Square. The company said it received approval today from the Federal Deposit Insurance Corporation (FDIC), a banking regulator in the United States, to start its own banking service:

The Board of Directors of the Federal Deposit Insurance Corporation (FDIC) has voted conditional approval of Square’s deposit insurance application for its Industrial Loan Company (ILC) banking charter. Square has also received charter approval from the Utah Department of Financial Institutions.

As a first step, the bank will offer loans and other financial services to Square merchants in the United States. The company started out by providing its own hardware and software payment solution to small vendors. However, in recent years he has also started to credit services.

[Read: How do you build a pet-friendly gadget? We asked experts and animal owners]

As TechCrunch notes, banking services like Square aim to provide easy access to capital for small businesses that might have difficulty getting it through traditional financial institutions.

Published March 2, 2021 – 06:08 UTC


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