By Connor Hart
Block received approval from the Federal Deposit Insurance Corp. to offer a consumer loan product that is designed to provide consumers with short-term cash flows.
Under the program, Cash App Borrow, the company said Thursday that users of its digital-payments platform will be able to receive small loans from its subsidiary Square Financial Services.
The average Cash App Borrow loan is less than $100 and has a duration of approximately one month, Block said. The short-term credit product is available to certain Cash App users, with eligibility and maximum borrows based on factors including product usage and activity, as well as on-time repayment history.
Block said the offering has been well received so far, with the company having notched nearly $9 billion in originations in 2024 through an external bank partner.
The program expands Square Financial's credit offerings, as the unit currently provides business loans and interest bearing business savings accounts to companies.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
March 13, 2025 17:28 ET (21:28 GMT)
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