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Square's banking push could help it achieve goals (SQ)

Square is applying for a US banking license, signifying the beginning of the firm’s long-speculated push into financial services

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Square is applying for a US banking license, signifying the beginning of the firm’s long-speculated push into financial services, according to Finextra. The firm applied for a specific type of license, called an Industrial Loan Charter (ILC), which allows firms to continue nonfinancial operations, like card readers or food delivery, according to theWall Street Journal.

It’s worth noting that these applications come with their fair share of controversy, and it’s unclear if Square’s will be approved; if it is, though, it’ll be the first ILC issued in a decade.

The bank should help bolster Square Capital, the firm’s business lending segment.

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  • The bank will be focused squarely on merchants, not consumers.
  • And it should help Square grow its burgeoning lending business.

That’s a smart long-term move for Square.

  • Square has been targeting retailers as it scales.
  • 46%
  • SFS could move the company further along that path.

Digital disruption is rocking the payments industry. But merchants, consumers, and the companies that help move money between them are all feeling its effects differently.

For banks, card networks, and processors, the digital revolution is bringing new opportunities — and new challenges. With new ways to pay emerging, incumbent firms can take advantage of solid brand recognition and large customer bases to woo new customers and keep those they already have.

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And for consumers, the digital revolution is providing more choice and making their lives easier. Digital wallets are simplifying purchases, allowing users to pay online with only a username and password and in-store with just a swipe of their thumb.

Dan Van Dyke, senior research analyst for BI Intelligence, Business Insider's premium research service has written a detailed report that explores the digital payments ecosystem today, its growth drivers, and where the industry is headed. The report also:

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