Square has released a card processing service that will likely benefit entrepreneurs, artists, business owners, and just about any consumer that wants to use mobile payments connected to a debit card. Users register their own “cashtag” username, such as cash.me/tylerjbecker, for super simple payments (and this is just as easy via the Square Cash mobile app).
This is primarily beneficial for small and medium sized service providers that often struggle with cash and checks from clients. Instead, it’s incredible easy to give clients, friends, or customers a unique cashtag (just like telling someone your Twitter handle), and payment can take place immediately.
In Re/code’s article on Square Cash, they mention the ability for non-profits to benefit from Square Cash cashtags, which will allow an organization to publicly promote their cash.me link. It’s quite similar to mobile payments app and service, Venmo, but the cash.me/username link is the game changer. Think about street performers, farmers markets, food trucks, pop-up shops, and all other forms of businesses displaying their Square Cash link on a table, right in front of the customer.
— Square (@Square) March 23, 2015
And for businesses that want to use Square Cash, the fee is 1.5%, below the average of other payment systems, including Square’s traditional payments processor for debit cards and credit cards, which is 2.75%. The hope for Square is that businesses will eventually pay for the Square Cash pro version, which has some extra features and benefits. It’s logical for small businesses to just use the consumer version of Square Cash, but Square recognizes this, and wants consumers to start using the service as a precursor for businesses.
Square Cash enters the same mix that PayPal, Venmo (which PayPal owns), SnapChat, and soon, Facebook Messenger, is in as well. Mobile payments are becoming as simple as ever, and perhaps one will emerge over the others soon.