Square is testing a new feature on its Cash App that will allow users to borrow up to $200 in short-term loans.
Cash App, the company's peer-to-peer payments service, allows users to transfer money to other users using a mobile app.
According to a TechCrunch report, the company is only testing the feature with about 1000 users right now, but plans to make the feature more widely available. The app is offering loans to users for amounts between $20 and $200.
Users will have four weeks to pay back loans, as well as a flat 5% fee. If users are unable to pay off the loan, they will get an additional one-week grace period, after which the app will start charging them a 1.25% interest rate.
The announcement comes over a week after the company said it made $875 million in bitcoin revenue via the Cash App in the second half of 2020.