This seems like a weird turn for Square to take. I would think that the regulatory crap that comes with becoming a bank would be a nightmare for someone like Square trying to move from being a payments processor to an actual lending institution.
http://www.sba.gov/community/blogs/community-blogs/small-bus...
https://www.idfpr.com/DFI/CCD/Discipline/SquarePersonifiedCD...
http://techcrunch.com/2013/08/16/square-fined-507k-in-florid...