Cash App, the peer-to-peer payment system from Square, recently announced that select users will now be able to borrow up to $200. Users will be required t pay the short-term loan back within four weeks alongside a flat fee of 5%. If users fail to repay the amount within the allotted time (with a one week grace period), Cash App will add 1.25% (non-compounding) interest each week. Users won't be able to take out more money until the initial loan is repaid.
“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,” a company spokesperson stated. “We look forward to hearing their feedback and learning from this experiment.”
Image Credit: Square