Payments company Square launches debit card for small businesses

By Anna Irrera NEW YORK (Reuters) - Payments company Square Inc is launching a free debit card for small businesses aimed at helping them better manage their cash flows, the company said on Thursday. The MasterCard debit card will allow companies to spend funds from sales they have processed via Square's payments systems as soon as they have made the sale, the company said. This gives business owners quicker access to the proceeds of sales rather than having to wait for the funds to be transferred and reach their bank account, Square said.

Reuters January 18, 2019 00:05:34 IST
Payments company Square launches debit card for small businesses

Payments company Square launches debit card for small businesses

By Anna Irrera

NEW YORK (Reuters) - Payments company Square Inc is launching a free debit card for small businesses aimed at helping them better manage their cash flows, the company said on Thursday.

The MasterCard debit card will allow companies to spend funds from sales they have processed via Square's payments systems as soon as they have made the sale, the company said.

This gives business owners quicker access to the proceeds of sales rather than having to wait for the funds to be transferred and reach their bank account, Square said.

"Sellers can get stuck in a cash flow crunch," Alyssa Henry, seller lead at Square, said on a call with journalists. "Square card is geared towards helping solve that pain point."

The card will also offer a 2.75 percent discount on purchases made at other Square sellers, the company said.

Square, led by Twitter Inc CEO Jack Dorsey, is best known for its small credit card reader that turns smartphones into payment terminals.

It offers a suite of other financial services for small businesses including loans and business software.

In December the company said it was refiling its application with U.S. state and federal regulators for a bank license. Square is applying with the Federal Deposit Insurance Corp (FDIC) for a special industrial loan company (ILC) license, that allows nontraditional financial firms to collect government-insured deposits. The bank would be Utah-chartered.

If granted a license the new unit will mainly be offering deposits accounts and loans to small businesses.

Square also services consumers through its peer-to-peer payment app called Cash which is connected to a debit card.

(Reporting by Anna Irrera; Editing by David Gregorio)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

France, Germany to agree to NATO role against Islamic State - sources
| Reuters
World

France, Germany to agree to NATO role against Islamic State - sources | Reuters

By Robin Emmott and John Irish | BRUSSELS/PARIS BRUSSELS/PARIS France and Germany will agree to a U.S. plan for NATO to take a bigger role in the fight against Islamic militants at a meeting with President Donald Trump on Thursday, but insist the move is purely symbolic, four senior European diplomats said.The decision to allow the North Atlantic Treaty Organization to join the coalition against Islamic State in Syria and Iraq follows weeks of pressure on the two allies, who are wary of NATO confronting Russia in Syria and of alienating Arab countries who see NATO as pushing a pro-Western agenda."NATO as an institution will join the coalition," said one senior diplomat involved in the discussions. "The question is whether this just a symbolic gesture to the United States

China's Xi says navy should become world class
| Reuters
World

China's Xi says navy should become world class | Reuters

BEIJING Chinese President Xi Jinping on Wednesday called for greater efforts to make the country's navy a world class one, strong in operations on, below and above the surface, as it steps up its ability to project power far from its shores.China's navy has taken an increasingly prominent role in recent months, with a rising star admiral taking command, its first aircraft carrier sailing around self-ruled Taiwan and a new aircraft carrier launched last month.With President Donald Trump promising a US shipbuilding spree and unnerving Beijing with his unpredictable approach on hot button issues including Taiwan and the South and East China Seas, China is pushing to narrow the gap with the U.S. Navy.Inspecting navy headquarters, Xi said the navy should "aim for the top ranks in the world", the Defence Ministry said in a statement about his visit."Building a strong and modern navy is an important mark of a top ranking global military," the ministry paraphrased Xi as saying.