[Jess]

Square is going to provide financing to "qualified" customers of its merchants at a flat rate of 9.99% and hold the loans on their balance sheet. Pretty PR. LC and Prosper defaults rates results in net returns of around 5% with APRs around 16%. Square has somehow determined that all of their products should be loss leaders. Trying to pull an amazon with lending. We'll see.

[Cambridge]

Square is going to provide financing to "qualified" customers of its merchants at a flat rate of 9.99% and hold the loans on their balance sheet. Pretty PR. LC and Prosper defaults rates results in net returns of around 5% with APRs around 16%. Square has somehow determined that all of their products should be loss leaders. Trying to pull an amazon with lending. We'll see.

I remember years ago (2012ish) Quarterspot was really aggressive with a simple interest, short term loan that was nearly comparable, something around the 12% range.

They've since eliminated that product, obviously.

[Jess]

I remember years ago (2012ish) Quarterspot was really aggressive with a simple interest, short term loan that was nearly comparable, something around the 12% range.

They've since eliminated that product, obviously.

This is unsecured consumer lending @9.99%. Great for merchants to be able to offer. Great for merchants customers......Rate is too low and square will lose money on lending. Need a LOT of increased low margin processing to recoup those losses. More unprofitable growth but it may not matter in terms of stock price if they kill on growth

[Cambridge]

This is unsecured consumer lending @9.99%. Great for merchants to be able to offer. Great for merchants customers......Rate is too low and square will lose money on lending. Need a LOT of increased low margin processing to recoup those losses. More unprofitable growth but it may not matter in terms of stock price if they kill on growth

I completely agree.