• Subscribe
  • Contact Us
  • About LendIt Fintech News
  • Home
  • Menu Item
  • Menu Item
  • Menu Item
  • Menu Item

Lend Academy

LendIt Fintech News: Daily Coverage of Fintech & Online Lending


  • Editorial
  • Daily News
  • Podcast
  • Investor Forum
  • Events

Square Launches Point of Sale Consumer Installment Loans

In their first foray into consumer loans Square Installments will offer loans from $250 to $10,000 with terms up to one year

October 8, 2018 By Peter Renton Leave a Comment

Views: 1,085

Last week we learned that Square, best known for their small business credit card processing service, is getting into the consumer loan business. Lending is not new to Square, they launched Square Capital in 2014 to help their small business customers get access to capital. But they have never offered a financing option direct to the consumer until now.

While the typical transaction on Square is small they had more than 36 million transactions larger than $250 in the past year. And these are the transactions they are going after with their new Square Installments product.

Loans will range from $250 to $10,000 and will have terms of three, six or twelve months. Interest rates will range from 0% – 24% APR. The application process is fairly simple with applications able to be completed in store on the customer’s own phone and most applications will be approved or rejected instantly. Square takes on the credit risk as the customer pays the loan back to Square directly and the merchant receives the full amount of the sale.

The way it works is that the customer, once approved, is given a virtual credit card number to provide to the merchant to process the transaction and trigger the loan. It is interesting that they quote APRs starting at 0%. Given that Square will be making significant income on the merchant processing fee I could see how offering a super prime customer a 0% loan could make sense for them in certain situations. [Read more…]

Filed Under: Peer to Peer Lending Tagged With: Point of Sale Finance, Square, Square Installments

Views: 1,085

Investor Intelligence

Peter Renton's Returns

Investor Forum

Lending Club Review

Prosper Review

Investor Resources

Most Popular Editorials

The Pure Marketplace Lending Model is Dead, the Hybrid Takes its Place

The 2018 Lending Club and Prosper Tax Guide

My Returns at Lending Club and Prosper

Map of Available States for Lending Club and Prosper Investors

Banks and Marketplace Lending Platforms: Ideal Partners?

Subscribe to the Podcast

Subscribe to the Lend Academy Podcast on iTunes
Subscribe to the Lend Academy Podcast
List of Podcast Episodes

Archives

Follow @LendAcademy Follow @LendIt

ABOUT LENDIT FINTECH NEWS

LendIt Fintech News, Powered by Lend Academy, has been bringing you all the news and information about fintech and online lending since 2010 when it was founded by Peter Renton. We not only have the industry’s most active news site, but also the largest investor forum and the first and most popular podcast.

We are a team of fintech enthusiasts who have been covering the industry for many years. With a deep knowledge of online lending, digital banking, blockchain, artificial intelligence and more our team covers the daily news and writes in-depth editorials.

Recent Editorials

  • LendIt Fintech USA is Just Two Weeks Away
  • Top 10 Fintech News Stories for the Week Ending April 10, 2021
  • Podcast 293: Atif Siddiqi of Branch
  • Caring Consumer Collections Policies Gain Traction
  • Top 10 Fintech News Stories for the Week Ending April 3, 2021

Copyright © 2021 · Metro Pro Theme on Genesis Framework · WordPress · Log in