← State of Embedded Finance 2026

Square

Can Square become the complete financial OS for small and medium businesses by owning the full stack — payments, banking, lending, payroll, and tax — on a single vertically integrated platform?

Founded2009
HQSan Francisco, California, USA
FoundersJack Dorsey, Jim McKelvey
Total raisedPost-IPO (NYSE: SQ, now Block Inc.)
Latest roundPost-IPO Debt
IndustryFintech / SMB banking
The story

Square launched in 2009 as a card-reader hardware company democratizing payment acceptance for micro and small businesses. Over a decade it evolved into a full financial operating system for SMBs — layering in payroll, banking (checking, savings), lending, and corporate card products, culminating in the 2021 launch of its own FDIC-insured bank, Square Financial Services, Inc. The 2021 rename to Block Inc. at the parent level separated the Square SMB brand from Cash App (consumer) and other ventures. The embedded finance strategy is now deeply vertical: Square underwrites loans using its own transaction data, issues checking accounts through its own bank charter, and embeds payroll/retirement/tax services directly into the seller dashboard.

Last 12 months
2026-03
2026-04
Product timeline
2009
Square founded; launched the iconic dongle card reader enabling SMBs to accept card payments via smartphone.· pivot
2014
Square Capital (now Square Loans) launched, offering merchant cash advances to sellers based on payment history.· lending
2015
Square IPO on NYSE under ticker SQ.· ipo
2020
Applied for and was granted an Industrial Loan Company (ILC) charter in Utah, creating Square Financial Services, Inc.· banking
2021
Square Financial Services, Inc. began operating as an FDIC-insured bank, enabling in-house deposit and lending products.· banking
2021
Parent company Square, Inc. rebranded to Block, Inc.; Square becomes the SMB-focused business unit.· pivot
2026
Square announced expansion of Square Loans program powered by ML underwriting; over $32B originated since 2014.· lending
Regulated entities
Industrial Bank Charter
US (Utah) · 2021
Square Financial Services, Inc.
The stack
Payments / PSP
Square Payments (self-operated)
Banking / BaaS
Square Financial Services, Inc. (in-house)
Card issuing
Square Financial Services, Inc. (in-house)
Lending
Square Financial Services, Inc. (in-house)Square LoansSquare Cash Advance
Payroll
Check
Open banking
PlaidSalt Edge
Sponsor bank
Sutton Bank
Accounting
QuickBooksXeroSageFreshBooksNetSuite
Accounting gap: minor