Square Capital chief Jacqueline Reses told CNBC in a phone interview
OCT 4 2018 • 9:00 AM EDT
The move allows Square users to charge for big purchase by splitting them up into smaller, fixed monthly payments.
“It’s a seamless and transparent way to offer installment payments to customers who might otherwise walk away, or might not be able to buy something in that particular moment,” Square Capital’s Jacqueline Reses says.
Square, run by Twitter CEO Jack Dorsey, has become increasingly focused on banking products like small loans.
Payments start-up Square is encroaching on even more of traditional banks’ territory.
The San Francisco-based tech company announced Thursday it will let businesses using Square’s payment network give customers the option to break big payments into smaller, fixed monthly ones.
“It’s a seamless and transparent way to offer installment payments to customers who might otherwise walk away, or might not be able to buy something in that particular moment,” Square Capital chief Jacqueline Reses told CNBC in a phone interview.
Payment installments, which Reses likened to a “super power” for small retailers, are otherwise offered through a larger bank or third party. This type of loan is typically reserved for retailers who bring in more than $1 million in revenue, and requires a lot of paperwork.
Square used proprietary data to see if there was demand. In an August survey, Square found that 84 percent of participants “appreciate the flexibility of being able to pay for large purchases over time” and 77 percent believe “financing options help them to effectively manage their budget.” Square has had more than 36 million high-ticket transactions larger than $250 in the past year.
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