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Square's Cash App pilots feature that enables users to borrow up to USD 200

Thursday 13 August 2020 11:12 CET | News

Peer-to-peer payments service from Square, Cash App, has announced that is giving select users a way to get short-term loans.

According to TechCrunch, although Cash App is testing the feature with around 1,000 users for now, it could become more broadly available in the future. Accordingly, Cash App is starting out by offering loans for any amount between USD 20 and USD 200. Users are expected to pay the loan back in four weeks, along with a flat fee of 5%. 

Besides, If consumers don’t pay off the loan after four weeks, they will get an additional one-week grace period. However, after that period, Square and Cash App will start adding 1.25% (non-compounding) interest each week. Moreover, consumers will not be enabled to take out an additional loan if they previously defaulted.

Overall, Square has been continuously expanding Cash App’s features with additions such as the Cash Card (a free debit card), Cash Boost (rewards) and Cash App Investing, TechCrunch reported.

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Keywords: Square, cash app, short-term loans, cash card, Cash Boost, Cash App Investing
Categories: Payments & Commerce | Mobile Payments
Countries: World
This article is part of category

Payments & Commerce