2023-06-28 09:58:55 ET
Block's ( NYSE: SQ ) Square payment systems for businesses has unveiled a beta version of new credit tools, including a credit card and new loan options, as well as cash flow management features , it said Wednesday.
The Square Credit Card, which runs on the American Express ( AXP ) network, provides sellers more spending flexibility and a rewards program without late fees or annual fees.
The card features a credit limit determined by the sales a seller processes through Square, and rewards them with free card processing every time they spend.
In addition, Square is broadening the functionality of its Square Loans product, in that businesses can now get loans that can be repaid on a fixed monthly basis, rather than through daily repayments. That, in turn, offers a more predictable repayment schedule.
Since those products entered beta, 25% of credit card spend and 30% of originations from loans with fixed monthly payments have come from upmarket sellers, which generate more than $500K in annualized gross payment volume.
Square is also launching more ways for Square Checking sellers to simplify their cash flow and spend management. That includes early deposit access, which is now available, and the ability for sellers to have up to four additional debit cards linked to their checking account, a feature that will come later this year.
Through the first five months of 2023, sellers using Square Checking spent more than $1B using their debitcCards, up 20% from the same period last year.
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Block's Square unveils credit card, new loan options in beta