Up nearly 150% this yr, Sq. (NYSE:SQ) may be due for a pullback in the long term. Customers ought to hope that state of affairs consists of go attributable to SQ stock is about up for long-term useful properties.The novel coronavirus pandemic is cementing Sq.’s standing as one among many must-own fintech names. That’s spectacular attributable to, a minimal of in precept, the pandemic may have been on a extreme drag on this determine. Sq.’s well-known smartphone-based card reader and stage of sale strategies are broadly utilized by small and medium-sized companies – the types of entities being crimped by the pandemic.The precedence is that these enterprise are being battered by the pandemic and that many acquired’t recuperate shortly ample to bolster the Sq. bottom line. Nonetheless, the company was able to report a smaller-than-expected second-quarter loss. Genuinely, Covid-19 is creating momentum for Sq. and these tailwinds will present sturdy even after the virus is defeated.Some analysts are concerned that prospects are focusing an extreme quantity of on enchancment contained within the digital pockets home, the place Sq. is a frontrunner by the use of Cash App and that that enchancment isn’t ample to bolster the struggles of the company’s small and medium-sized sellers. Nonetheless, price is actuality in financial markets. A sell-side analyst voiced these factors in early July when SQ was on the lookout for and promoting spherical $115. Now it’s over $155.Talking Tailwinds for SQ StockOne completely totally different cautionary Cash App story bandied about by analysts is that fairly a number of the present enchancment in that segments stems from customers opting to amass authorities stimulus benefits of their Cash App accounts. Analysts argue that catalyst will in the long term disappear attributable to Covid-19 will develop to be a part of the earlier and Uncle Sam will cease sending cash to People.That’s true, nonetheless the sentiment moreover ignores new enchancment frontiers Sq. is forging into. As an example, Sq. Capital is turning into a stress in processing payroll security program (PPP) loans, carving out a selected half for itself amongst smaller loans that massive banks usually ignore.As of late June, Sq. Capital facilitated roughly $820 million worth of PPP loans at a median measurement of $11,000, nearly half of which went to companies in areas the place the widespread annual household income is decrease than $50,000. Not solely is Sq. Capital lending to companies which may be underserved or not served the least bit by typical banks, it’s doing so in additional atmosphere good type. All via the span of six weeks, Sq. originated the amount of loans it’d take a day by day bank higher than four months to put into motion.One completely totally different avenue for enchancment for Sq., though it’s nonetheless in its nascent phases, is a friendlier model of old-school payday loans – one subject the company is at current testing in select areas. There are extra payday loan retailers contained within the U.S. than there are McDonald’s (NYSE:MCD) consuming locations, indicating this unsavory enterprise is big enterprise.Using simple arithmetic, a borrower at a normal payday loan retailer would repay $230, assuming the loan is paid on time, to borrow $200. Sq. can knock that all the way in which wherein whereby all the way in which wherein all the way in which right down to $210.The company is testing the thought in areas the place Cash App is widespread, owing to very large swaths of shoppers which may be “unbanked” – a demographic predatory lenders usually prey upon with onerous costs of curiosity.Merely Scratching the FloorThe aforementioned parts don’t embrace two of most probably most probably basically 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 a few years so far that cash was usurped by quite a lot of sorts of price for the first time, there’s a protracted runway for enchancment for Cash App and Sq.’s bread and butter stage of sale strategies.Sq. is tethered to the rise of on-line retail attributable to it affords sellers full choices, along with on-line retailers and digital terminals, confirming the fintech firm has deep attain into the e-commerce ecosystem. That’s associated at a time when on-line retailers are taking ever greater percentages of enterprise away from brick-and-mortar rivals.Todd Shriber has been an InvestorPlace contributor since 2014. He owns shares of Sq..