Square Cash may not be as popular as Venmo, but the mobile payment app is one of the best out there. Now it’s expanding beyond friend-to-friend payments to cover businesses as well with a new feature called $Cashtags.
Setting up a Cashtag is as simple as downloading the app, linking your debit card and claiming a name. Once that’s done anyone can send you money online or with the Square Cash app. For businesses, Square will also take a 1.5 percent fee for every transaction.
If Cashtags catch on we may soon see them online and in the real world. Square suggests putting the tag on everything from business cards to websites. A busking street musician might even scribble one out on a piece of cardboard, making it possible to score donations from music fans who don’t have a physical dollar on hand.
Square still has one other advantage over Venmo. It deposits money straight into your bank account rather than storing that cash inside the app until you transfer it manually. Based on earlier reports, we’re still expecting Pay with Venmo for business to arrive eventually, but for now Square Cash has a second advantage over its mobile payment competition.