Square reader is a core product for the payment processing company. Image source: Square.

What: Shares of credit card processing company Square Inc (SQ -2.15%) jumped a whopping 46% in March, according to data provided by S&P Global Market Intelligence, after introducing a new product that could have a big impact on its business.

So what: Square launched a product called "Build With Square," which will allow online payments to be accepted through the company's platform. This could help cross-sell Square's services with retailers who use the company's products in-store. This would help tie together Square's existing payment platforms and back office software -- and it could help bring in new customers as well.  

Now what: Square has struggled to find its footing, both financially and strategically, since its IPO. But the market is betting that this new offering, along with improved software, will help draw new customers. The company is still expected to report a hefty loss in 2016, but investors should keep an eye out for traction in e-commerce and how it plays a roll in keeping customers within the Square ecosystem. If the company can build a full suite of offerings that small businesses value, that could be the key to unlocking long-term value.