Up just about 150% this yr, Sq. (NYSE:SQ) may be due for a pullback in the long run. Shoppers should hope that situation consists of go due to SQ stock is about up for long-term helpful properties.The novel coronavirus pandemic is cementing Sq.’s standing as one amongst many must-own fintech names. That’s spectacular due to, a minimum of in principle, the pandemic may have been on a excessive drag on this decide. Sq.’s well-known smartphone-based card reader and stage of sale methods are broadly utilized by small and medium-sized corporations – the sorts of entities being crimped by the pandemic.The priority is that these enterprise are being battered by the pandemic and that many acquired’t recuperate shortly ample to bolster the Sq. backside line. Nonetheless, the corporate was in a position to report a smaller-than-expected second-quarter loss. Genuinely, Covid-19 is creating momentum for Sq. and these tailwinds will current sturdy even after the virus is defeated.Some analysts are involved that customers are focusing an excessive amount of on enchancment contained in the digital pockets house, the place Sq. is a frontrunner by way of Money App and that that enchancment isn’t ample to bolster the struggles of the corporate’s small and medium-sized sellers. Nonetheless, price is actuality in monetary markets. A sell-side analyst voiced these points in early July when SQ was looking for and selling spherical $115. Now it’s over $155.Speaking Tailwinds for SQ StockOne totally different cautionary Money App story bandied about by analysts is that quite a few the current enchancment in that segments stems from shoppers opting to amass authorities stimulus advantages of their Money App accounts. Analysts argue that catalyst will in the long run disappear due to Covid-19 will develop to be a component of the sooner and Uncle Sam will stop sending cash to Folks.That’s true, nonetheless the sentiment furthermore ignores new enchancment frontiers Sq. is forging into. For instance, Sq. Capital is changing into a stress in processing payroll safety program (PPP) loans, carving out a particular part for itself amongst smaller loans that huge banks typically ignore.As of late June, Sq. Capital facilitated roughly $820 million worth of PPP loans at a median measurement of $11,000, just about half of which went to corporations in areas the place the widespread annual family revenue is lower than $50,000. Not solely is Sq. Capital lending to corporations which may be underserved or not served in the slightest degree by typical banks, it’s doing so in further environment nice sort. All through the span of six weeks, Sq. originated the quantity of loans it’d take a every day bank greater than 4 months to place into movement.One totally different avenue for enchancment for Sq., although it’s nonetheless in its nascent phases, is a friendlier model of old-school payday loans – one issue the corporate is at present testing in choose areas. There are additional payday loan retailers contained in the U.S. than there are McDonald’s (NYSE:MCD) consuming places, indicating this unsavory enterprise is huge enterprise.Utilizing straightforward arithmetic, a borrower at a standard payday loan retailer would repay $230, assuming the loan is paid on time, to borrow $200. Sq. can knock that every one the way in which wherein all the way in which all the way down to $210.The corporate is testing the thought in areas the place Money App is widespread, owing to huge swaths of customers which may be “unbanked” – a demographic predatory lenders typically prey upon with onerous prices of curiosity.Merely Scratching the FloorThe aforementioned components don’t embrace two of most likely most likely essentially the most sturdy post-pandemic traits referring to Sq.: the shift to cashless funds and the rise of e-commerce.Remembering that it was just some years to this point that cash was usurped by a number of varieties of price for the primary time, there’s a protracted runway for enchancment for Money App and Sq.’s bread and butter stage of sale methods.Sq. is tethered to the rise of on-line retail due to it affords sellers full decisions, together with on-line retailers and digital terminals, confirming the fintech company has deep attain into the e-commerce ecosystem. That’s related at a time when on-line retailers are taking ever bigger percentages of enterprise away from brick-and-mortar rivals.Todd Shriber has been an InvestorPlace contributor since 2014. He owns shares of Sq..