For the last few years, I’ve been using Square Cash for small transactions between friends. Since its introduction, it’s been dead simple to send money: you send your friend an email, copy email@example.com, and enter the dollar amount in the subject line. I’ve preferred it to Paypal, which most everyone else I know uses, for several reasons:
- Having occasionally sold things on eBay, I’ve watched a lot of my sales earnings evaporate with Paypal fees. That left a bad taste in my mouth.
- Speaking of fees, Paypal insists on having my ABA bank routing and account numbers to send money in order to avoid the recipient incurring a transaction fee. Square, on the other hand, uses a debit card number, which comes with fraud protection and allows you to dispute fishy transactions. It’s difficult to do that with ABA transfers.
- One of Paypal’s founders is a billionaire that encourages students to drop out of college.
Today, I noticed that the Square Cash iPhone app was updated to include support for a few new features:
- They have a dedicated domain name for the service at https://cash.me.
- Users may now have custom web address to receive payments, which they cleverly call “$cashtags.” For example, you can send me money—all kinds of money—at https://cash.me/$juanmonroy.
- They also introduced something called Cash Pro which provides businesses with a simple Cash-style payments for a 1.5% transaction fee.
That last bit is interesting mostly because it explains how this Cash service makes money. It was a bit of a hard sell when I would recommend the service to friends. Each would invariably ask how Square can transfer money with no fees. My response of “they make it up in volume” never seemed satisfactory.
I hope this lasts longer than that recently killed Square Order app.