Square Co-Founder and CEO Jack Dorsey announced the launch of a new Instant Deposit service for UK businesses at an event at London’s British Library last night.
The new product helps to solve one of the biggest challenges small businesses face: managing cash flow.
Square builds products to make accepting cards simple, fast and affordable for small and medium-sized businesses. With the launch of Instant Deposit, sellers can now get their money into their bank account in minutes - 24 hours a day, seven days a week.
Jack said: “Since our founding, we’ve heard that cash flow is a major pain point for small businesses. Our products were all built to provide fast and predictable access to funds to help businesses of all sizes remain competitive and agile. We believe our sellers should have the ability to access the money they’ve made as fast as possible, so we’re thrilled to provide this new service to businesses across the UK.”
Speed is a hallmark of Square services. Businesses using Square usually get their money the next working day, which is already a best-in-class feature. With the launch of Instant Deposit, sellers can now click a button in the Square App to get their funds into their bank account in around 20 minutes. All they need to do is link their bank account to their Square account. Square offers competitive, flat fees of 1.75% fee when taking in-person payments, and 2.5% for payments made over the phone, online or via digital invoice. Sellers using Instant Deposit will be charged an additional 1%.
Francisco Prieto sells delicious Argentinian steak sandwiches at weekend markets around South and East London from his stall Pireto’s Grill. He said: “We trade on Fridays and at the weekends, and we have always had to wait until the following week to get hold of our card takings. My business is around 50% card payments so waiting for that money really affects my cash flow.
“If I’ve had a busy weekend I’ll want to restock supplies, but I don’t always have the cash to do that. With Instant Deposit, I can get my money straight away, 24/7, and put it right back into the business. It’s the nearest thing to cash I have found and, as a small business owner, I’d certainly recommend it.”
Jack made the announcement as part of a fireside chat hosted by the British Library’s Business & IP Centre, in which he also set out his vision for Square in the UK, and how he believes the business will drive economic empowerment for the country’s 5.4 million small and medium-sized businesses. He revealed that 75% of Square’s UK customers were outside of London as the business makes efforts to reach those businesses who are not yet part of the credit and debit card economy.
He was in conversation with Dr Anne-Marie Imafidon MBE, the founder of social enterprise Stemettes, an organisation that seeks to introduce girls & young women to careers in science, technology, engineering and maths. As well as discussing the launch of Instant Deposit, the pair also discussed emerging trends in finance and how technologies like machine learning can help power the UK’s small business community.