Block seeks OCC bank charter

Block, the parent company of Square and Cash App, is officially seeking a national bank charter from the OCC. For retailers and operators, this is a significant development in the consumer financing ecosystem. Currently, fintechs like Block often have to partner with third-party banks to offer lending products, credit cards, and interest-bearing accounts. By becoming a national bank, Block can eliminate these middlemen. This move likely means more integrated, lower-cost financing options for both merchants using Square and consumers using Cash App. For your business, this could translate to more competitive Buy Now, Pay Later (BNPL) rates and smoother transaction processing. Block already owns Afterpay, and a bank charter would allow them to fund these loans directly from their own balance sheet rather than relying on external partners. This usually leads to higher approval rates for your customers and faster settlement times for your shop. It also signals a shift where the 'apps' your customers use to pay are becoming the very banks that provide their credit, creating a more seamless path to purchase at the point of sale.

Source: Banking Dive

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