Square is expanding its services to the online world. The company has announced its new Square Market, an online marketplace that will let businesses sell their wares online by setting up a virtual store.

"We're focused on making easy-to-use tools for merchants that create an incredible experience for their customers — no matter where they are. Creating an online marketplace is our next step in making commerce easy for everyone," said Ajit Varma, Square's Director of Discovery. "Square Market makes local businesses accessible to customers down the block and across the country."

With Square Market, small merchants can establish an online presence without building a website and integrating a shopping cart, setting up a merchant account and dealing with a payment gateway. Instead, Square Market lets them open a store for free and pay one 2.75 percent fee for each item sold.

Square Market is one more effort of Square to move beyond its humble mobile point of sale roots. The company recently announced an upgraded version of its Square Register product with additional functionality designed specifically for quick service restaurants.

Read more about POS.