Square Wants a Piece of This $186 Billion Market
Payment-processing company Square (NYSE: SQ) plans to apply to form an industrial bank that will offer services to small businesses, including lending and deposit accounts. The small-business lending market in the United States is estimated to be worth $186 billion, and if Square is able to capture a significant share, its profits could get a major boost.
Square plans to submit an application in Utah to form a banking unit, which would be called Square Financial Services, Inc. The newly formed bank would offer loans and deposit accounts to small businesses, and Square plans to capitalize the bank with $56 million in cash.
Square's planned banking unit will give small businesses access to much-needed capital. Image Source: Square.
Source: Fool.com
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