Hatch has rolled out a new business checking account product for small- to medium-sized business (SMB) owners, according to a company blog post. The product is also geared toward “solopreneurs” and those who want to start a business in the future.
Hatch also announced in the post that it has raised $20 million in funding from Kleiner Perkins and Foundation Capital, among others.
The new business checking product will offer up to 5 percent debit cash back at gas stations, restaurants and other businesses, along with no non-sufficient funds (NSF) fees and up to $50 with Hatch Cover if one’s balance goes negative, the post stated.
Hatch created the product in response to the 3.5 million SMBs that have started in the U.S. in the past year, a number that is not likely to decrease even as the pandemic slows down, according to the post.
In separate news, Wise Co-Founder and CEO Arjun Thyagarajan told PYMNTS that there have been a good deal more mom-and-pop types of SMBs joining business banking ecosystems, which includes small restaurants becoming part of networks like DoorDash or Uber Eats.
Those banking ecosystems have offered a new level of support to these SMBs, with integrated services like financial products, including the ability to accept payments, which Thyagarajan said is a good step for companies.
There has also been more interest in banking functionality embedded in user functions through both the digital ecosystems and B2B Software-as-a-Service (SaaS) platforms.
Thyagarajan said the motives for doing so could include opening new revenue streams, especially through adding new cards, and for companies to cultivate a bolstered environment of user engagement. He said keeping bank deposits in the ecosystem could help, as less money would be slated to go to bank accounts outside the ecosystem.
In addition, the user experience is boosted when payments and banking are under the same umbrella of the brand of the SaaS.
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