Square to Offer American Express Credit Card for Sellers

  • Square is launching a credit card for its small business clients.
  • The American Express card will be powered by i2c and issued by Celtic Bank.
  • There is no word yet on a launch date, but Square said that more details will be released next year.

Move over, Brex, Divvy, and Ramp. Square is getting in on the business credit card game. The mobile payments company announced today it is expanding on its existing partnership with American Express to launch a new credit card that will be tailored for Square’s merchant clients.

Square already offers a small suite of banking tools, including checking, savings, and loans, but this is the company’s first ever credit card offering. Adding a credit card to the mix will not only round out Square’s in-house banking options, it will also help it compete in the increasingly profitable business banking arena.

“Small businesses can struggle to find fair and simple solutions for their credit needs. Square has spent years building a successful lending program to eliminate this barrier for sellers, and we’re uniquely positioned to innovate even further in this space to expand access to new types of credit products,” said Square Banking General Manager Luke Voiles. “We wanted to create a product on a payment network that has a strong track record of supporting small merchants, making this card a natural progression of our existing relationship with American Express.”

As with most fintechs that offer a credit card, Square is tapping a third party, i2c, to power the credit card offering, which will be issued by Celtic Bank.

According to Square, the credit card will integrate directly into the company’s banking suite to help businesses manage their cashflow and offer them visibility into their business’ finances. At the moment, there are not many details about the new American Express credit card, including the launch date, rewards benefits, or cost. However, Square said it will provide more information next year.

The only thing surprising about this announcement is how late to the game Square is. Square launched in 2009 when fintech was still in its infancy. The company debuted its lending arm in 2014 and remained relatively quiet until the challenger banking boom last year when it unveiled its savings and checking accounts.

In comparison, one of the largest challengers in the business banking arena, Brex, was founded in 2017. The company launched its business credit card offering in 2018 and was an overnight success. Multiple other new players joined in, including Ramp, Divvy, and Expensify. Perhaps Square plans to rely on its existing customer base to give it a competitive edge against the competition. The company had more than 64 million business clients as of 2020.

Photo by Tima Miroshnichenko