U.S. Bank presented an all-in-one checking account combined with payment acceptance capabilities for small businesses.
On Monday, April 14, U.S. Bank Business Essentials announced that it lets businesses accept card payments with free same-day access to their funds and a free mobile card reader.
The financial institution stated that it introduced Business Essentials in response to the needs and demands of representatives of the small business sector who are seeking service providers capable of bundling their digital banking, payment, and operational tools.
Shruti Patel, chief product officer for the business banking segment at U.S. Bank, noted that through Business Essentials, the lender makes it easier for small business owners to manage their business. It was underlined that the financial institution brings together many capabilities in a single integrated interface. Among the capabilities in this case are a best-in-class checking account with payments and differentiated easy-to-use software.
Also on Monday, the financial institution presented a spending management platform to help businesses track and control card-based spending. This platform is rolled out across U.S. Bank’s business banking credit card portfolios. Business owners get an alternative to using multiple tools.
Courtney Kelso, head of the bank’s consumer/small business segment, stated that this is an additional capability on financial institution credit cards, which provides its cardholders with the convenience of monitoring, controlling, and tracking business spending, while they continue to enjoy the great rewards and benefits already associated with their business credit cards. It was also noted that with Spend Management, those same cards are an even more enriching tool for operating a business.
The launch of the new tools was announced at a time when small and medium-sized businesses are facing gradually increasing financial pressures. Last week, the media released information according to which in the United States, half of the representatives of the mentioned sector rely on their day-to-day sales just to keep the lights on. Approximately 20% of the specified businesses are pessimistic about their odds of survival over the next two years. About 7% of them assume that their positive prospects are zero.
According to industry research, currently, only 28% of small and medium-sized businesses in the United States have business cards. Of this group, 64% of businesses with access to any form of financing turn to their corporate cards to withdraw cash for operations.
Credit cards potentially carry high interest rates, but it is in this case that consumers are offered a quick and relatively easy way to access funds. At the same time, 40% of businesses with access to finance rely on their owners’ personal credit cards, blurring the lines between personal and business finances and potentially putting both at risk.
U.S. Bank, headquartered in Minneapolis, Minnesota, is currently the fifth-largest bank in the United States. The financial institution provides banking, investment, trust, mortgage, and payment services products to its clients.
As we have reported earlier, U.S. Bank and One Inc to Accelerate Instant Insurance Payments.
