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Square and Coinbase eye consumer lending market

Square is piloting a feature that lets users of its Cash App P2P payments service get small, short-term loans.

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Square and Coinbase eye consumer lending market

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According to TechCrunch, Jack Dorsey's firm is carrying out a test with about 1000 Cash App users, offering loans of between $20 and $200 that have to be paid back within four weeks and come with a flat five per cent fee.

Separately, Coinbase is set to let customers borrow cash against their Bitcoin holdings. The firm has opened a waitlist for interested customers in some US states.

Users will be able to borrow up to 30% - or $20,000 - of their Bitcoin holdings at an eight per cent APR, with no application or credit check.

The service is aimed at customers who may need or want cash for expenses like home renovations or car repairs but do not want to prematurely sell their crypto, says Coinbase.

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