With how our economy is doing right now, many may be thrilled to learn about what Square could soon be offering.
According to a TechCrunch report, fintech company Square is reportedly testing short-term loans via its peer-to-peer payments service, Cash App. Square’s Cash App allows users to transfer money to other users using a mobile app.
TechCrunch has reported that Square is only testing the feature with about 1000 users right now, but plans to make the feature more widely available. The app is offering loans to users for amounts between $20 and $200.
Users will have four weeks to pay back loans, as well as a flat 5% fee. If users are unable to pay off the loan, they will get an additional one-week grace period, after which the app will start charging them a 1.25% interest rate.
“We are always testing new features in Cash App, and recently began testing the ability to borrow money with about 1,000 Cash App customers,” a company spokesperson said in a statement. “We look forward to hearing their feedback and learning from this experiment.”
Next to its Cash App, the company has also been offering loans to small businesses through its Square Capital arm.
Disclaimer: We have no position in Square Inc. (NYSE: SQ) and have not been compensated for this article.