Square made headlines for its little plastic smartphone attachment that let businesses process payments through their smartphones. Now, the company is offering a mobile payment app, bringing its processing power to the masses.
If you’re curious about Square’s Cash App, here’s what you need to know.
What Can Square’s Cash App Do?
At its simplest, Square’s Cash App is a mobile payment app. It provides users with methods for sending and receiving money from friends and family, similar to Venmo.
The app is incredibly simple. You can enter a dollar amount and then either send or request funds. Money in your account is transferable too. You can send it to another person or your bank account. In fact, there’s an Auto Cash Out option that directs money to your bank account automatically when you have funds available.
If you make a mistake with a payment, Square’s Cash App has your back. You can cancel payments and correct the issue.
Additionally, users don’t have to give out their email addresses or phone numbers to each other to send or receive funds. Each user gets a unique URL, or $Cashtag, and they can provide that in lieu of their actual contact details.
Bluetooth connectivity also means you can send payments to a person even if you don’t have their details in your phone.
In late 2017, the company added the ability to buy and sell Bitcoin through the app, which is a differentiator.
However, Square’s Cash App can’t do everything its counterparts can. For example, you can’t use the app to pay store transactions.
Are There Transaction Limits?
Like most payment processing apps, there are transaction limits. The default settings allow you to send up to $250 in a seven-day period. You can only receive up to $1,000 in each 30-day period as well.
However, if you provide verification details, like a Social Security Number, the limit increases.
What About Transaction Fees?
Generally, Square’s Cash App transaction fees are comparable to competitors. Sending money to friends and family is free if you use a bank account or debit card. Credit card payments have a 3 percent fee.
Additionally, if you want a same-day deposit into your bank account, that will cost you 1 percent of the total being sent.
Should You Try Square’s Cash App?
Ultimately, Square’s Cash App is a user-friendly mobile payment app. It also touts high-end security, upping the odds that your money is safe. However, you can’t use it in stores, only between individuals. This means it doesn’t have all of the functionality of its competitors.
But, if you need a super simple mobile payment app just for friends and family transactions, it’s not a bad choice. The bare-bones interface is incredibly easy to use, and mistake transactions are cancelable.
Additionally, if you want to invest in Bitcoin, but don’t have an app for buying and selling, Square’s Cash App is an option. However, it only deals in Bitcoin. So, if you’re interested in other cryptocurrencies, this won’t meet your needs.
Have you tried Square’s Cash App or do you prefer a different mobile payment app? Tell us about it in the comments below!
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Tamila McDonald has worked as a Financial Advisor for the military for past 13 years. She has taught Personal Financial classes on every subject from credit, to life insurance, as well as all other aspects of financial management. Mrs. McDonald is an AFCPE Accredited Financial Counselor and has helped her clients to meet their short-term and long-term financial goals.