LONDON – Block, the payments company owned by tech billionaire Jack Dorsey, has launched its corporate card service within the UK, deepening its expansion within the country and taking over large incumbents like this one American Express.
The company's business-focused payments arm, Square, told CNBC that it opened registrations for its Square Card product within the U.K. late Wednesday. This is the primary time that Block has expanded its business card offering outside of North America, where it was first launched in 2019.
Currently available within the US and Canada, the Square Card is a free business card that shortens the time between a merchant making a sale and funds becoming available for spending. It competes with offerings from corporations like American Express And Citigroup.
Square UK managing director Samina Hussain-Letch said the launch of the corporate's corporate card product within the UK would give merchants quicker access to funds and help them manage their day-to-day spending more easily.
“In developing this product, we rededicated ourselves to our mission of simplifying trading,” Hussain-Letch told CNBC. Based on internal research, Square found that small and micro businesses “prefer to consolidate their funds in one place,” she said, adding that real-time access to funds was also a vital factor.
In the UK, Square Card will compete against local banking giants Lloyd's And NatWest. It may also increase competition for some well-funded European fintech players, including Pleo, Payhawk and Spenderk.
Hussain-Letch highlighted The Vinyl Guys for example of an early adopter of its corporate card offering. The Stafford-based vehicle lettering and signage printer used the corporate card as a part of a trial with domestic customers within the UK.
“We have received great feedback on the advantages of quick access to finance, which really helps our small business sellers to succeed and grow, as we all know that the primary reason small businesses fail within the UK is money flow issues are.” “she added.
Merchants can personalize their employees' spending cards with signatures and company branding.
Once accepted into the Square Card program, an worker can begin using their very own digital wallet apps. The service doesn’t charge any monthly fees, maintenance fees or exchange rate fees.
Square is increasing its investment within the UK at a time when the country desires to be seen as a destination for global technology corporations.
Business owners are warning of a possible brain drain from the UK in response to the federal government's controversial tax changes.
On Wednesday, Finance Minister Rachel Reeves increased capital gains tax (CGT) – a levy on investment gains. But the news provided some relief to tech entrepreneurs who feared a fair more intense tax crackdown on the wealthy. The lower capital gains tax rate will increase from 10% to 18%, while the upper rate will rise from 20% to 24%, Reeves said. The tax rises are expected to lift £2.5 billion.
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