Square prepares for savings, by checking
Square is said to be gearing up to provide savings and chequing accounts to small and medium-sized businesses (SMBs), Bloomberg reported on Monday (May 24th).
According to Bloomberg, signs of the plan appear in a hidden programming language in a recent update to the company’s app for Apple’s iPad and iPhone. This code refers to savings accounts in addition to checking accounts and indicates that the latter type of account will connect to the company’s current business debit card.
Additionally, the code hints that Square will set itself apart by avoiding monthly service fees and fees associated with overdrafts and minimum balances, Bloomberg reported.
Square intends to provide a half-percent interest rate for its savings account throughout this year, Bloomberg reported, citing “the language in the hidden code.” This rate would correspond to the various online savings accounts only.
In addition, funds from sales processed through Square will be instantly accessible to be used for spending in the control product, according to Bloomberg.
It is not known when to deploy verification and savings. Bloomberg noted that the existence of the accounts in the application programming language could show that a release is slated for soon.
Square refers to new offerings like “Square Savings” and “Square Checking,” Bloomberg reported, citing the code.
“Our bank, Square Financial Services, began operations in March,” Square noted in a statement, per Bloomberg. “We’ve said for a long time that its focus will be on offering loan and deposit products to businesses.
However, Square would not comment on the programming language of the company’s app, according to Bloomberg, who reported that Square has so far focused on SME lending.
Bloomberg also warned that product details could change ahead of deployment.
As PYMNTS previously reported, Square Financial Services, Square’s state-chartered industrial bank, operates in Utah. This branch of financial services will provide banking services such as deposits. Early forays will focus on serving the company’s small business network that already runs on Square’s payment processing platform.