Square launches the Square Card, a debit card for businesses
Square is offering a new product to its business customers. TechCrunch reports that the fintech firm is announcing the Square Card, a debit card that businesses can use to withdraw and spend cash acquired through Square payments.
Among the selling points of the card made to reporters in a conference call, the company emphasized the benefit of improved cash flow as businesses would be able to immediately spend the money gained in sales, says the outlet.
Rather than requiring businesses to open a new bank account, businesses using Square can access funds from their Square account through a free debit card from Mastercard, eliminating the need to first transfer that money to a separate bank account before spending.
Another potential benefit is making business debit cards more accessible, as Square reports that 40 percent of beta testers had never had a business debit card before. Tracking business expenses using a business debit card gives businesses an advantage during tax season.
TechCrunch adds that Square is incentivizing purchases made within the Square ecosystem through a 2.75 percent discount (the company’s standard processing fee) granted when Square Card holders use their debit card in transactions with other Square sellers.
“As soon as I get a payment, if I need to go buy props … I don’t have to wait. The funds are available immediately.”
Beta testers such as C.C. Nedrow, owner of Payton’s Photography in Montgomery, Illinois, appreciated the immediate access to cash. “As soon as I get a payment, if I need to go buy props … I don’t have to wait. The funds are available immediately,” she told TechCrunch.
“As sellers make crucial spending decisions, we know that fast access to funds — and the ability to put proceeds from sales to use immediately — can help with overall cashflow management,” Square seller lead Alyssa Henry said in a statement.
“Small businesses have to be nimble. They don’t have the time to wait for funds to clear a bank account, or the resources to easily reconcile personal versus business expenses. Square Card addresses these pain points.”