LONDON — Block, the financial services company led by tech mogul Jack Dorsey, has officially introduced its corporate card service in the U.K. in a strategic move to bolster its growth within the country and compete directly with established players like American Express.
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| Marco Bello | AFP | Getty Images |
Square, Block’s business-centered payments division, revealed to CNBC that it opened up registrations for its Square Card in Britain late Wednesday, marking a significant milestone as this is Block's first expansion of its corporate card services beyond North America, where it initially launched in 2019.
Currently available in the U.S. and Canada, the Square Card is a free spending card designed for businesses, aiming to minimize the gap between making sales and accessing funds for expenditures. This offering serves as an alternative to similar products from competitors like American Express and Citigroup.
Samina Hussain-Letch, the executive director for Square U.K., noted that this launch will allow U.K. merchants to access their funds more quickly, providing them with greater flexibility in managing their daily finances.
"In creating this product, we returned to our core mission of simplifying commerce," Hussain-Letch told CNBC. Square’s internal research revealed that small and micro businesses prefer having all their funds in one place, and real-time access was a key feature requested by users.
In the U.K. market, the Square Card will face competition from well-established local banks like Lloyds and NatWest and also add pressure on several highly funded European fintech firms, including Pleo, Payhawk, and Spendesk.
Hussain-Letch also pointed to The Vinyl Guys, a vehicle branding and signage business in Stafford, as an example of an early adopter during the Square Card’s testing phase with local U.K. clients.
She shared that feedback has been positive, with businesses emphasizing the advantage of instant access to funds, which is critical to growth for small businesses, as cash flow issues remain the leading cause of failure for these enterprises in the U.K.
Merchants using the Square Card have the option to customize employee spending cards with unique signatures and branding. After onboarding, employees can start using their Square Cards immediately through their digital wallets. The service comes with no monthly fees, maintenance costs, or foreign exchange fees.
Square’s investment in the U.K. reflects a broader trend, as the country is actively positioning itself as a desirable destination for global tech companies. However, recent tax changes have fueled concerns among entrepreneurs over a possible talent migration out of the U.K.
On Wednesday, Finance Minister Rachel Reeves announced an increase in Capital Gains Tax (CGT) rates, sparking mixed reactions. While there were concerns over an intensified tax burden on wealthier individuals, the tax adjustments were ultimately less severe than feared.
The basic CGT rate will rise from 10% to 18%, while the higher rate will increase from 20% to 24%, generating an estimated £2.5 billion in revenue.
