Square is one of the most renowned financial company. It is basically an American company leading the online payment industry forward. Standing in the 21st century, it is very important to go with the online payment option. Moreover, business owners are also pairing the latest payment terminals with their businesses. It will let them help to accept online credit card payments flawlessly. Moreover, if we see the present situation, consumers are using credit cards and debit cards instead of cash. Therefore, the picture is very clear- online payment is the future.
However, after the arrival of COVID-19, many businesses were affected badly and therefore, Square has come up with an innovative offer for the merchants. Yes, they are actually short-term loans on their Cash App. Cash App is one of the most efficient peer to peer payment solution application from Square. According to the press release, the loan amount will be between $20 and $200.
Although the amount is not big, the small merchants can get benefits from this offer. If they are unable to maintain the cash flow in their business, they can take this loan from the Cash App from Square.
According to the company, merchants will have to pay the loan back within four weeks. There will be a flat 5% interest along with the loan amount. If any merchant fails to pay it within four weeks, there will be a grace period of one week. After this grace period, the company will add 1.25% non-compounding interest. It will be added every week after the grace period. Moreover, the customers cannot take any further loans if the previous one is not paid.
According to a spokesperson of the company, the company is testing these new features in their application. They are currently testing it on 1000 Cash App customers. However, the feedback from the customer also matters and therefore, the company is awaiting for the feedback from the customers.
In the future, Square will expand this feature. After the arrival of COVID-19, many people lost their job and small merchants closed their retail outlets. It affected the overall cash flow in the business. So, considering the situation, this short-term loan feature from Square will be a blessing in disguise.
However, customers must utilize this balance properly as there is a flat 5% interest. The company is planning to make this offer more flexible so that, more users can get benefits from this offer.