Square's Pushing Merchants to Use Its Prepaid Card
Square (NYSE: SQ) introduced the Square Card about a year ago, offering merchants instant access to their Square account balance through a prepaid debit card. The product mimics the successful Cash Card linked to the consumer-facing Cash App, but it's for Square's core merchant services.
Management hasn't been nearly as aggressive in pushing the Square Card as it has with Cash Card. The company introduced Boosts in 2018, offering discounts for making purchases with your Cash Card at certain merchants. Square Card has kept its same value proposition for merchants since launch -- instant access to your Square account balance, and a 2.75% rebate on purchases made with other Square merchants.
But after a successful 2019, it looks like Square is going to get more aggressive in pushing merchants to sign up and use Square Card. Its first move is to raise the fee for Instant Deposit from 1% to 1.5% -- a move it made on the consumer side in 2018. The move should push more merchants to sign up for Square Card and use it more often for less-expensive instant access to their funds.
Source Fool.com
