Square not only is serious about the way merchants get their money from customers, but also about simplifying the way people send money over the Internet, attacking a platform held by eBay’s PayPal and Google Wallet.
Square introduced Square Cash, a service that available only in the U.S. now and is invite-only, which allows users to transfer money with one e-mail sent to a person they’re paying. All a person needs to do is start an e-mail to the person they’re sending money to, then CC the e-mail address email@example.com, and in the subject line put the dollar amount of cash to be transferred, and hit send as the last step.
After the recipient enters their debit card number, the money is then transferred directly to their bank account.
At its I/O Developer conference earlier this year, Google announced a similar feature, allowing users to send money via their Gmail account.
Square Cash is free to send and receiveand requires no signup process, unlike PayPal. (Square Cash does limit your transactions at $250 a week, if you want to send more there are some more hoops to jump through.) And even after users create a PayPal account – they must still transfer money to and from their PayPal account to their bank.
“Square has always believed in creating solutions for individuals and businesses that work with the tools they already have in their pocket,” said Square Cash lead Brian Grassadonia in the press release. “Square Cash makes it convenient to send money to anyone – without making them jump through hoops to retrieve it. Now it’s easier than ever to split a bill, send a birthday gift, or settle up with a friend, no matter where you are.”
Square, which is the second venture by Twitter co-founder Jack Dorsey, noted that Square Cash works with any e-mail client, including Gmail, Yahoo! Mail, Mac Mail, Android Mail and Outlook, and is accessible on desktop and mobile devices. There’s also an app for both iOS and Android.
According to recent reports, Square’s merchant service has processed as much as $16-billion in transactions in Canada, U.K. and the U.S.