Square fdicann azevedotechcrunch, the popular payment processing company, has announced that it has received approval from the Federal Deposit Insurance Corporation (FDIC) to operate as a bank. This move will allow Square to offer loans and other financial services to small businesses in the United States.
What Does This Mean for Square?
With the FDIC license, Square can now operate as Square Financial Services, a subsidiary of Square, Inc. This means that the company can now offer loans and other financial services directly to its customers, without having to rely on third-party lenders. This move is a significant step forward for Square, which has been expanding its financial services offerings over the past few years. In 2018, the company launched Square Capital, which offers loans to small businesses that use Square’s payment processing services. With the FDIC license, Square can now expand its lending services and offer a wider range of financial products to its customers.
What Does This Mean for Small Businesses?
For small businesses, this move by Square could be a game-changer. By offering loans and other financial services directly to its customers. Square fdicann azevedotechcrunch can provide more flexible and affordable financing options than traditional banks. Small businesses often struggle to secure financing from traditional banks. Which can be reluctant to lend to businesses with limited credit histories or inconsistent cash flow. By leveraging its data on small business transactions, Square can offer loans to businesses that might not qualify for traditional bank loans.
Overall, Square’s acquisition of an FDIC license is a significant development for the company. And for small businesses in the United States. By expanding its financial services offerings, Square can provide more flexible and affordable financing options to its customers. Helping small businesses grow and thrive.