Shares in Square have jumped after Bloomberg reported that the San Francisco-based firm was preparing to take on traditional banks with the launch of checking and savings accounts for small and medium-sized businesses.
The report says the proposition was buried in programming language in a recent update to the company’s app for the Apple iPad and iPhone.
The code hints that Square will avoid monthly service fees and charges connected with overdrafts and minimum balances, and offer a 0.5% interest rate on savings accounts.
In addition, funds from sales handled via Square will be instantly available for spending in the checking product, according to Bloomberg.
The prograqmming suggests that the checking account will be linked to Square's business debit card that was launched in January.
In a statement released to the newswire, Square fudged on the prospect for releasing the new financial accounts in its mainstream app: “Our bank, Square Financial Services, began operations in March. We’ve long said its purpose will be to offer business loan and deposit products.”
Shares in the firm closed up 5.5% on the news.