Square Financial Services (SFS), a wholly owned subsidiary of the Company roadblocklaunched a deposit tier that pays higher APY to square Sellers who maintain a daily balance of $10,000 or more in their accounts Savings box account.
Square’s new High Yield Savings program provides these sellers with a 3.50% APY, offering the higher rate to qualifying sellers automatically, without requiring any additional action on their part, SFS said in a Friday (June 12) press release emailed to PYMNTS.
The price applies to the entire balance and is calculated daily. According to the statement, APY is subject to change.
Square High Yield Savings is designed to deliver meaningful value to Square sellers and help them achieve their savings goals, while also helping SFS grow core deposits to fund its lending programs at a lower cost of capital, the statement said.
SFS provides lending products to Square sellers and Block-Owned customers Cash Appdepending on the version.
“Square sellers are business owners first, but they are also savers, planners and investors in their future,” SFS CEO Richard Rosenthal he said in the release. “This rate reflects our confidence in Square’s seller base as a source of stable, long-term deposits — and our commitment to returning real value to small businesses that make this model successful.”
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Square launched Square Savings alongside other financial products for Small business owners in July 2021, saying it aims to help these owners manage their cash flow through services that will help them automate their savings, among other things.
“For nearly five years, Square Savings has given sellers the seamless, automated ability to put money aside from the same platform they use to accept payments, organize inventory and manage their staff — resulting in higher seller satisfaction while helping SFS build a stable, low-cost deposit base,” SFS said in its Friday press release.
PYMNTS reported in May that Block’s first-quarter earnings report showed an acceleration growth Via both the Square and Cash app. The company is also trying to deepen relationships between merchants and consumers through its local loyalty and discovery initiative. Cluster leadership said during the earnings call that the company expects continued momentum from vendor expansion initiatives.
