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Last week, Square announced they are expanding Square Capital, the cash-advance business with the hire of a senior Yahoo executive.

It was reported that Square receives a percentage fee from the $1 million per day that it administers, the fee being calculated based on the credit card transactions. “Jackie’s understanding of the financial services industry and her background in tech and investing make her the perfect fit to lead Square Capital,” Jack Dorsey, Square CEO, said.

It is worthwhile to note that Square Capital has already facilitated more than $225 million to companies since launching operations in May of last year (2014). United Capital Source offer small businesses merchant processing and merchant cash advance loans.

In the recent Square S1 filing, it was disclosed that PayPal handled $235 billion in 2014, while First Data did $1.7 trillion in the same time frame, just in the U.S.; Square processed $23.8 billion. There is concern from retailers that there’s a lot of competition in the Point of Sale space, including from rivals PayPal and First Data, two companies that are now public. And when it comes to transactional volume, Square falls far short of both.

It is also worthy to note that Square keeps about 1% of all payments processed. That’s a pretty thin cut that the company gets to keep for itself, and it’s also before operating expenses come into play.

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