Square, whose technology has disrupted the way small businesses accept card payments, is now ready to offer “Square Checking” and“Square Saving” savings accounts to those customers, in a direct challenge to industry giants like JPMorgan Chase, according to media reports.
According to the hidden code of company Square Mobile Payment are the names of the two new services “Square Checking“ and “Square Saving“.
It’s unclear when Square will launch its checking and savings products, but information in the code suggests they could be coming soon.
The hidden code also comes with product promotion pages that point to Square’s website, but those pages are not yet online. According to information in the hidden code, Square, a mobile payments company, plans to offer savings accounts a 0.5 percent interest rate until 2021. The rate is similar to other online-only savings accounts. The money from a sale through Square can be immediately put into a checking account.
Square rocked the financial industry when it introduced the card reader and offered payments in an easy-to-understand way, in contrast to the onerous fee requirements that traditional banks impose on small business customers.
Square also announced the launch of Square Financial Services, its offline banking business, in March. In the future, the bank will provide financing for Square merchants across the United States, according to Square’s mobile payment company. In addition, it offers a range of deposit products. With the introduction of the current account, Square will launch a more direct challenge for business-led companies such as JPMorgan Chase, Wells Fargo and Bank of America. Financial institutions and their trade groups have complained that fintech companies like Square can compete directly with banks but are not subject to the same level of regulation.
Square’s Cash App will also offer loans ranging from $20 to $200. Square users have four weeks to repay the loan and pay a 5 percent service fee. Users will be given an additional week’s grace period if they fail to pay off the loan after four weeks, after which the Square and Cash apps will start charging 1.25% interest each week.