What happened 

Shares of payment processing company Square, Inc. (NYSE:SQ) popped 29.1% in October, according to data provided by S&P Global Market Intelligence, riding a wave of excitement around the company starting a bank and introducing a product that could grow its list of large retail customers. 

So what 

News of the Square Financial Services application to run a bank that could offer loans to small and medium-sized businesses broke in September, but the stock has been slowly rising ever since. To add to that product extension, Square Register was introduced late in October as a solution for larger retailers who are doing high volume sales at a stationary register. The product has two screens, one for the buyer and one for the seller, and can swipe any type of credit card. 

Square Register being used by a customer.

Image source: Square.

As Square moves beyond being just a mobile sales company it has had to improve capabilities for retailers, adding accounting, loans, employee management, and many other tools to the Square portfolio. 

Now what 

Every time Square improves its capabilities it is entrenching itself deeper into its customer's business models. New businesses can now lean on Square's capabilities just to launch their business and large businesses are finding the company attractive as well. I think loans and an improved register are the kind of product additions that will keep Square growing and I think shares have further to run.

Travis Hoium has no position in any of the stocks mentioned. The Motley Fool owns shares of Square. The Motley Fool has a disclosure policy.