Aiming to help local sellers manage their cash flow and access to capital, Square, the payment processing company, announced Thursday (July 28) that it is rolling out Scheduled Deposit services.
With the new service sellers now have the option to deposit their daily sales in their bank account on the same day they receive them. Square charges 1 percent of the total deposit amount and in exchange sellers get access to their money without having to wait. The service even works on weekends and holidays.
“Cash flow and access to capital are some of the biggest challenges faced by local sellers when growing a business, often due to lengthy settlement times as long as five days,” said Square in a blog post announcing the new feature. “With the introduction of Scheduled Deposit, Square gives sellers the option to deposit their daily sales in their bank account the very same day, seven days a week.”
Square’s latest feature comes on the heels of more efforts on the part of the company to make it easier for sellers. The company already offers next-business-day settlements and Instant Deposit. It has also speeded up the process to get loans through Square Capital. Since Instant Deposit was launched last year, Square says sellers have completed more than 2 million deposits instantly. What’s more, the number of sellers who are opting to get their money instantly has more than doubled since the start of 2016.
For its first quarter, the payments processor, which went public in November of last year, reported a loss of $0.14 a share and revenue of $379 million, which was much narrower than the loss it lodged in the year earlier period. While Square saw transaction volumes increase, costs have also been rising, up 72 percent overall. The software and data products at Square also saw an uptick in sales but are still a small part of the payment processors overall business.
Square will report its Q2 earnings next week on Wednesday, Aug. 3. Check back to see how they do.