The news: Square refreshed its credit card program and expanded its Square Bill Pay to address small businesses’ cash-flow needs, per a press release.

Square sellers can now pay vendors with their Square Credit Card through Square Bill Pay, including rent, insurance, and marketing payments.

Cardholders can earn 3% cash back on all Bill Pay transactions and 1.5% back on everything else, redeemable as cash deposits in Square Savings.

And sellers can make payments through Square Bill Pay with cards, regardless of whether the vendor accepts cards—all vendors receive their invoices via ACH or check.

Why this matters: Small businesses are hungry for payment methods that preserve their liquidity. More than 4 in 10 SMBs are even willing to pay for a credit card that increases the security, flexibility, and speed of payments that they make, per a PYMNTS Intelligence report in collaboration with Mastercard. 

Zoom out: Square is positioning itself to serve all of sellers’ needs in one place. 

This builds on other recent rollouts like competitive savings accounts at 3.5% APY and increased lending opportunities that make the argument for small businesses to place more of their financial and payment capabilities within Square’s ecosystem.

Recommendation for issuers: Small businesses want relief as tariff pressures and rising costs tighten margins. 

Offering cards that are competitive on rewards could help convince cash-dependent SMBs to try a new product: 10.3% of SMBs name costs and fees as their biggest barrier to paying with cards and digital technology, per PYMNTS Intelligence.

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