Square announced Thursday (October 4) the launch of Square Installments, a new service that provides sellers with access to a tool for growing sales that it said has traditionally only been available to larger businesses.
In a press release, Square said the new payment method gives customers the freedom to pay for big purchases by splitting it into easy, fixed monthly payments. Aimed at helping small businesses never miss a sale, Square said the new service underscore its efforts to expand access to financial services for businesses and individuals. “We’re focused on removing the complexity associated with financial products, enabling more businesses to access incredible tools that can help them grow,” said Jacqueline Reses, Head of Square Capital in a press release. “Square Installments delivers simple and quick financing to customers seeking greater flexibility as they make purchasing decisions.”
According to Square, for the most part, providing payment options such as Square Installments hasn’t been available to most sellers. In a survey of Square sellers, the company found close to half said the number one reason for not offering installment payments is that it is long and complicated to set up. Square Installments takes minutes to set up and there are no sales volume minimums to use the services. Square contends that by offering installment payments sellers will see their business boom. Square pointed to a survey that showed 68 percent of consumers said they would more likely to use a small or local business if there were financing options. “Square Installments has helped me increase order amounts and create a steadier business flow, really contributing to overall business growth,” says Lohit Pattanaik, owner of Fly1 Motorsports in Southern California in the press release. “Custom car parts can come at a sizable cost, but providing the flexibility to spread payment over several months makes it very attainable.” Customers applying for Square Installments can do it online via brief application and get a decision in real time. The customer if approved has the option to pay over 3, 6 or 12 months.
Square Installments is simple and transparent for customers. Customers can apply through a brief online application and get a decision in real-time. If approved, customers will see the option to pay over 3, 6 or 12 months, with the total cost clearly spelled out up front. The entire Square Installments experience, from application to repayment, has been designed with the customer in mind: the application is in the customer’s hands at all times, whether they choose to apply from the comfort of their home or in-store when they see an item they love. Ultimately, Square Installments creates a more private and comfortable experience for both customers and sellers. The installment payments are for purchases between $250 and $10,000. Interest rates on the installment payments range from 0% to 24% Square said.