INTERNATIONAL – Square, the payments company founded by Twitter chief executive Jack Dorsey, has launched a new service that enables customers of its small-business clients to pay for purchases in instalments, the company said on Thursday.
Through Square Installments, the San Francisco-based company will be extending credit to the customers of merchants that use its technology to accept payments online and in-store for purchases ranging between $250 (R3 661.53) and $10 000.
Borrowers will be able to repay in fixed monthly payments over a period of three, six or 12 months. Interest rates will range between 0 percent and 24 percent.
Merchants will receive the payment upfront and Square will be holding the loans on its balance sheet.
Square, whose flagship technology is a small credit card reader that turns smartphones into payment tablets, has been seeking to diversify its revenue stream by providing more services ranging from loans to accounting software.