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.

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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...

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