Square Inc. (NYSE:SQ) is swiftly tiptoeing into the banking world. Sellers will experience an enhanced level of transactions using the company’s debit card for businesses. The new provision means the merchants do not have to access a bank account in order to spend their cash. They will neither need to use intermediaries because they can keep their funds with Square.
The San Francisco-based company is building and tapping into a rising need for easier and reliable payment platforms. The new product also comes at a time when the company’s influence on the business payments space seems to be soaring.
Square is keenly pushing its banking ambitions
Square is passionate about working with small businesses, which keep the economy revolving. The same business has to wait for days on end before they can access money initiated from a credit card sale. Its passion goes into helping business start-ups acquire loans through Square Capital.
Square Capital Lead notes “Square Capital is uniquely positioned to build a bridge between the financial system and the underserved, creating access for small businesses to both capital and the economy.”
On the other hand, Square is working closely with regulators in the push of its banking ambitions. The company had earlier withdrawn a license authorization application it had filed. Square explained that there were pertinent issues to settle with Federal Deposit Insurance Corporation (FDIC). Nonetheless, it seems like everything is now in its rightful place. The company is confident about gaining approval into banking.
But there are other players in the payment space paying attention
As Square continues to build its payment structures, other players in the payment space are also very keen. Fiserv is one of those that are making tremendous moves perhaps in competition with Square. The company says it is planning to buy payment processor First Data worth $22 billion. This will have a direct competition with Square’s new debit card.
Apparently, not many banks are happy with the latest unfolding. Besides, companies like Square seems to be on another level of growth; thanks to its point-of-sale lending business.