December 19, 2018Blog Posts

Payments company Square to re-apply for a bank license

Reuters

Square Inc. the payments company led by Twitter Inc. chief executive Jack Dorsey, is refiling its application with U.S. state and federal regulators for a bank license, the company said on Wednesday. Square is applying with the Federal Deposit Insurance Corp (FDIC) for a special industrial loan company (ILC) license, that allows nontraditional financial firms to collect government-insured deposits. The bank would be Utah-chartered. Square, which is best known for its small credit card reader, had first applied for banking charter in September 2017, but had withdrawn its application earlier this year. If granted a license, the new unit, called Square Financial Services, mainly will be offering deposit accounts and loans to small businesses. Since withdrawing its application, Square has been in discussions with regulators in order to address some of the questions that had been raised, a Square spokesman said in a statement.

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