Summary
Square today announced a significant expansion of its Square Credit Card program and a new Square Bill Pay capability that enables sellers to fund vendor payments with their Square Credit Card, regardless of whether the vendor accepts cards. Together, the updates give sellers a more powerful way to manage cash flow, business expenses and vendor payments from a single platform. The refreshed card operates on the American Express network.
Key Facts
- Square Credit Card now offers unlimited 3% cash back on Square Bill Pay transactions and 1.5% on all other purchases
- Rewards redeemable as cash deposits into Square Savings (up to 3.50% APY), statement credit, or free processing
- New Bill Pay lets sellers pay vendors that don't accept card payments
- Bill Pay broadened from Square Checking sellers to all sellers as an accounts payable solution
- Square routes money the vendor's preferred way (ACH direct deposit or mailed check)
- 3% cash back on Bill Pay transactions covers the fee
- Operates on American Express network, issued by Celtic Bank
- Card features: dynamic credit line, no personal guarantee, no annual/late/foreign transaction fees
- Number of sellers actively using Square Credit Card has doubled since late 2024 eligibility expansion
- Half of small businesses cite uneven cash flow as a top financial challenge
Why It Matters
Square's credit card and Bill Pay expansion strengthens its embedded financial stack for small businesses, addressing a core pain point: managing outflows and cash flow timing. By letting sellers pay vendors with a rewards-earning credit card even when vendors don't accept cards, Square gives businesses more flexibility in cash flow management while reducing manual overhead. The integration of credit, savings (up to 3.50% APY), checking and payments in one platform deepens Square's "everything in one place" model and its lock-in with merchants. For the broader fintech sector, the move illustrates how platforms are embedding banking products — credit, savings, AP — directly into merchant tools, competing with traditional SMB financial services and standalone accounts payable solutions.