Square is planning to refile to open a bank
Square (SQ) is taking another shot at breaking into banking. According to Reuters, the payment company has announced that it plans to refile the necessary paperwork with regulators to open a bank in Utah next week. Square first tried to start a bank in September 2017.
The payment company is known for its credit card processor, payment hardware suite, and peer-to-peer service, Cash App. The company also issues small business loans through Square Capital, through which it has dispersed $3.5 billion in loans and advances. If Square is successful in opening its own bank, the company may not need to depend on outside banks for its core operations.
Square’s growth acceleration continues
Despite falling ~40% since October, which was a part of a broader stock market decline, Square stock has risen 70.2% this year and a whopping 319% in the last two years. Square’s revenue, which has been accelerating for the past several quarters, grew 50.7% year-over-year to $882.1 million in the third quarter. Square is still not profitable. However, investors have been flocking to high-growth tech stocks despite them lacking profitability.