Square's payment mobile application Cash App is reportedly testing a new feature that allows users make short-term loans for any amount between $20 and $200, TechCrunch has learned.
A company spokesperson said Cash App is only testing the feature with approximately 1,000 users so far.
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The payback term of the loan back is four weeks, along with a flat fee of 5%.
In case a borrower does not pay off the loan within four weeks, Cash App will provide an additional one-week grace period, then it will start adding 1.25% (non-compounding) interest each week.
"We are always testing new features in Cash App, and recently began testing the ability to borrow money with about 1,000 Cash App customers," the spokesperson added.
It was earlier reported that Cash App's bitcoin-related revenue for the Q2 of the year had grown up to $875 million.
According to the Q2 earnings report, gross profit from bitcoin for the same period was $17 million.
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