Search Results for "Square"
20 results for "Square"
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Stripe Acquires Stablecoin Platform Bridge for $1.1 Billion
Stripe acquired Bridge, a stablecoin infrastructure platform, for $1.1 billion in the largest crypto acquisition at the time. Bridge was founded by Coinbase and Square alumni and had raised $40 million led by Sequoia. The deal strengthens Stripe's ability to offer fast, low-cost stablecoin-based payments across chains like Solana, Ethereum, and Polygon.
Square Seeks New Banking Partner After Wells Fargo Exit
Square, part of Block, began searching for a replacement banking partner after Wells Fargo exited a key market relationship. The departure created operational gaps for Square's financial services. This highlights the fragility of fintech-bank partnerships and the ongoing dependency of major fintechs on sponsor bank relationships.
FDIC Issues Consent Orders to Piermont Bank and Sutton Bank Over BaaS Failures
The FDIC issued consent orders against Piermont Bank and Sutton Bank for compliance failures related to their BaaS partnerships, particularly around Bank Secrecy Act obligations. Sutton Bank, which partners with fintechs including Robinhood, Square, and Upgrade, was required to collect customer data retroactively back to July 2020. The actions signal intensifying regulatory pressure on sponsor banks operating in the BaaS space.
OCC Approves Zero Fintech De Novo Bank Charters Under Acting Comptroller Hsu
As of October 2023, the OCC had not approved any de novo bank charter applications from fintech companies since Acting Comptroller Hsu took office. More than half of fintechs that filed since 2017 withdrew their applications. This regulatory freeze has pushed fintechs toward acquiring existing banks rather than building new ones.
PayPal Launches Tap to Pay on Android for U.S. Merchants
PayPal launched Tap to Pay on Android for U.S. merchants through its Venmo and Zettle apps, enabling contactless payment acceptance without additional hardware. This embedded finance capability allows merchants to turn Android phones into payment terminals. The launch followed PayPal's earlier iOS support and trailed competitors Stripe and Square.
Square Beta Tests Credit Card Product for Sellers via Block
Square, a subsidiary of Block Inc., began testing a credit card product aimed at its merchant sellers, expanding its embedded finance offering beyond payments into lending. The product is developed in partnership with American Express. This represents Square's deepening push into embedded financial services for SMEs.
Block Closes $29B Afterpay Acquisition, Rolls Out BNPL to Square Sellers
Block Inc. (Square's parent company) completed its $29 billion acquisition of Afterpay on January 31, 2022, and began rolling out BNPL integration to Square Online sellers in the U.S. and Australia on February 1. The deal embeds buy now, pay later functionality directly into Square's merchant ecosystem and Cash App. This positions Block as a major player in embedded consumer finance at the point of sale.
Square Receives Industrial Banking Charter Approval
Square received approval for an industrial banking charter, enabling the fintech to operate banking services more independently. This approval allows Square to expand its product offerings and reduce reliance on partner banks. The move is part of a broader trend of fintechs pursuing bank charters to gain greater operational autonomy.
Square Announces $29 Billion Acquisition of BNPL Provider Afterpay
Square announced the acquisition of Australian BNPL provider Afterpay for approximately $29 billion in an all-stock deal. The acquisition aimed to integrate Afterpay's buy-now-pay-later capabilities into Square's merchant and consumer ecosystems. The deal represented one of the largest fintech M&A transactions and signaled Square's push deeper into embedded finance and consumer lending.
Brex Expands Instant Payouts to PayPal, Square, and Stripe Merchants
Brex expanded its instant payouts service to merchants using PayPal, Square, and Stripe, enabling immediate access to earnings for a fee. Previously the feature was limited to Amazon and Shopify users. The expansion aims to improve cash flow for Brex customers who also benefit from free wires, ACH transfers, expense management, and rewards.
Square Financial Services Launches as Industrial Loan Company Bank in Utah
Square Financial Services officially launched as an FDIC-insured industrial loan company (ILC) bank in Utah in March 2021. The launch followed years of regulatory review and made Square one of the few major fintechs to secure its own banking charter. This milestone enables Square to offer deposit accounts and loans directly through its ecosystem.
Brex Applies for Industrial Loan Company Charter with FDIC and Utah
Corporate credit card fintech Brex applied for an Industrial Loan Company (ILC) charter with the FDIC and Utah Department of Financial Institutions. The application followed renewed interest in ILC charters after Square and Nelnet received approvals in March 2020. Obtaining a charter would allow Brex to take deposits and reduce reliance on bank partners.
Max Levchin Highlights Embedded Lending as Fintech's Next Big Opportunity
TechCrunch reported on Max Levchin's vision for fintech's next opportunities, spotlighting how companies like Stripe Capital, Square Capital, Brex, and Shopify Capital were leveraging merchant transaction data to offer embedded lending products. This approach of using real-time cash flow data for creditworthiness was framed as the future of credit scoring.
Embedded Finance Projected as $7 Trillion Opportunity for Payment Companies
Industry analysis identified embedded finance as a $7 trillion market opportunity over ten years, with Stripe (valued at $36B) and Square ($57B) positioned as leaders. Payment facilitation companies were enabling platforms and online businesses to seamlessly integrate financial services, representing a paradigm shift in financial services distribution.
PayPal, Square, and Intuit Approved as Direct PPP Lenders
PayPal, Square, and Intuit were approved by the SBA as direct lenders under the Paycheck Protection Program (PPP) for coronavirus relief. This marked a significant moment in fintech-bank convergence, allowing non-bank fintechs to originate federally guaranteed loans. The approval expanded embedded lending capabilities for these platforms' small business customers.
FDIC Approves ILC Bank Charters for Square and Nelnet
The FDIC approved Industrial Loan Company (ILC) charters for Square Financial Services (Square Bank) and Nelnet Bank, ending a years-long moratorium on new ILC charters. This landmark decision opens the door for fintechs to obtain banking charters and operate deposit-taking institutions.
Fintechs Increasingly Partner With Small Banks Instead of Pursuing Charters
A Los Angeles Times investigation reported that fintech companies are increasingly teaming up with small-town banks rather than pursuing their own banking charters. Companies like Square and SoFi faced regulatory obstacles, with SoFi withdrawing its ILC application entirely. The trend underscored the growing importance of bank-fintech partnerships as the foundation of embedded finance.
Stripe Announces Corporate Credit Card for Business Clients
Stripe announced a corporate credit card for its business clients in September 2019, further expanding its embedded financial services offerings beyond payments and lending. The move positioned Stripe alongside competitors like Brex and Square in the corporate card space.
Stash Raises $65M to Expand Banking and Micro-Investment Platform
Consumer fintech Stash raised $65M from Union Square Ventures, Breyer Capital, and others. The platform partners with Green Dot's banking subsidiary for FDIC-insured accounts and launched a stock-back debit card rewards feature. With over 2 million users, the funding supports Stash's embedded banking and micro-investment product suite.
PayPal Expands Instant Transfer to Bank Accounts via JPMorgan Partnership
PayPal expanded its Instant Transfer feature enabling users to move PayPal balances to U.S. bank accounts or debit cards within 30 minutes, leveraging JPMorgan Chase and The Clearing House's Real Time Payments network. The service charges a 1% fee capped at $10. This embedded finance initiative aimed to provide faster liquidity for consumers and merchants competing with Square and Stripe payout offerings.