Square mulls controversial service for merchants – report

Square mulls controversial service for merchants – report

04 MAR 2014

In a bid to further diversify its business, Square is piloting a service that makes a lump-sum loan to merchants in exchange for a cut of future sales plus a fixed fee, according to Re/code.

The area of so-called merchant cash advances is controversial and outside existing regulation for loans. Such advances can be a last, desperate move for a business that is struggling.

The m-payments firm is currently running a pilot of the new service called Square Capital, which is also its latest attempt to diversify from its core business of handling payments for small retailers.


Richard Handford

Richard is the editor of Mobile World Live’s money channel and a contributor to the daily news service. He is an experienced technology and business journalist who previously worked as a freelancer for many publications over the last decade including...

Read more