Square payment temporarily withdraws bank license application

According to Reuters, San Francisco-based payments processor Square Inc applied to the Federal Deposit Insurance Corporation (hereinafter referred to as FDIC) to become an “industrial loan company.”

If the application is approved, Square can be transformed from a non-traditional financial company into a financial platform that can receive government-guaranteed deposits.

On July 5th Square announced it would withdraw the application, and has not yet offered a time frame for a second one.

However, Square’s previous bank license application to the Utah Financial Regulatory Authority remains in effect.

Earlier this year, Square announced the launch of a dedicated app for buying and selling bitcoin, though New York state isn’t part of the service.

Just a few weeks before the cancellation of the FDIC application, Square just received a virtual currency license from the New York State Financial Services Office.