Square Beta Tests Credit Card Product for Sellers via Block

Square, owned by Block Inc., launched a beta test of a credit card designed for its merchant sellers, as reported by Banking Dive in June 2023. The product was developed in partnership with American Express and targets small and mid-sized businesses already using Square's point-of-sale and payments infrastructure. By offering credit directly to its merchant base, Square extends its embedded finance strategy from payments processing into lending and working capital.

The credit card leverages Square's existing transaction data and merchant relationships to underwrite and distribute financial products within its ecosystem. This move positions Square as a more comprehensive embedded financial services provider competing with traditional bank-issued business cards. The product reflects a broader BaaS trend where platform companies embed credit products alongside core payment services.

Financial terms of the card were not fully disclosed during the beta phase.