What happened

Shares of financial technology company Square (SQ 0.14%) shot higher on Tuesday, rising as much as 9.9%. As of 2:13 p.m. EDT, shares were up 9.3%.

The stock's gain follows the launch of the company's new payroll mobile app, which is now available on iOS and Android. 

A person uses a chip reader built into Square Register

Image source: Square.

So what

Square has been rapidly expanding its business beyond the mobile card reader it was initially known for, rolling out products and services to better serve businesses' and consumers' financial needs. The company now offers a range of business services, such as working capital loans, website building, and e-commerce. With its Cash App ecosystem, Square serves consumers with peer-to-peer payments and debit cards.

Square's payroll service, launched in 2015, is one of the company's newer products that has been quickly gaining traction -- and a dedicated mobile payroll app further strengthens the company's offering in the space.

Square explained the new Payroll mobile app in a press release on Tuesday:

The Payroll App makes it easy for employers to manage payroll, one of the most important yet complicated aspects of running a business, from anywhere. As part of Square's ecosystem of mobile tools the Payroll App is a cohesive, integrated solution that enables sellers to manage all aspects of their business no matter where they are.

Now what

With an excellent track record of new product launches in recent years, a mobile app for Square's payroll service is likely viewed by many as a meaningful catalyst for the company. In the company's fourth-quarter shareholder letter, Square said 36% of its adjusted revenue was now generated from products launched since 2014. 

Square's year-over-year revenue growth rates have been accelerating recently -- and management expects full-year 2018 revenue to rise about 55% year over year.