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Cramer Worries Square Could Turn Into On Deck or LendingClub

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San Francisco-based payments technology company Square (SQ) the needs to work a bit harder to wow its investors.

Square shares plummeted 20% on Friday from a Thursday close of $13.05 to trade around $10.48 in early afternoon trading following the company's first quarter results announcement on Thursday.

TheStreet's founder Jim Cramer said he didn't like Square's first quarter.

"They have some credit risk," he said adding that the company, which lends to small businesses through its Square Capital business, has a default rate of around 4%, compared to an average default rate of 2.67%.

"Is Square going to be like an On Deck (ONDK - Get Report) and Lending Club (LC - Get Report) ? We don't want...


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