Square launches Instant Deposit service for US merchants
Square, a mobile payments company, has rolled out a new service that allows merchants to instantly deposit money into their accounts.
Dubbed as Instant Deposit, the new service operates as part of Square mobile app and will be available to all Square sellers in the US.
The service will allow merchants to deposit funds directly into an account 24 hours a day, seven days a week with a tap of a button in the Square app.
In order to avail the service, each deposit must exceed a $50 minimum and fall below a $2,500 maximum, and the business owner must link up his US debit card to the bank account.
Each deposit made with Instant Deposit carries a 1% surcharge.
Thousands of Square merchants have deposited over $10m into their accounts using Instant Deposit during beta testing.
“That’s why we first premiered next-business-day deposits for our customers, and now we’re making your deposit schedule even faster — literally seconds after a sale,” the company said in a blog post.
Brian Grassadonia, who leads the Square Cash team, told Payment Week that, “The concept is to give merchants the working capital that they need to run their business in a very efficient manner.
“We believe instant deposit is a competitively differentiated feature that adds a lot of value for our merchants. It’s not available anywhere else.”