US payments business Square can now launch banking services including loans for SMBs.
Square has received federal and state authority in the US for banking services.
This comes after its application to create a de novo industrial loan bank.
It will be able to originate commercial loans to merchants that use its payments system to process card transactions.
What does this mean?
Since launching in 2009 to help businesses accept card payments, Square has wanted to break into banking and this approval is an important step. Square launched its payments service in the UK in 2017 so may well be offering its new service to small businesses here soon.