Hashtags revolutionized Web searches, especially on social media. Square is hoping its new Cashtags do the same for mobile payments.
The mobile payments processor and eCommerce solution just introduced Square Cashtags, or more precisely, $Cashtags.
The program is really an expansion of the already-popular Square Cash app. Square launched that in 2013 and it allowed any individual to exchange cash and check payments with their friends and other Square Cash users. Money goes from one person’s bank account into another.
Until just recently, though, this service was only available to individuals. Now, Square is expanding Square Cash to businesses and introducing $Cashtags.
Check out this video from Square that quickly explains the program:
Brian Grassadonia, the lead at Square Cash, says that individual businesses like painters and musicians are already using Square Cash to accept payments from people they know.
$Cashtags is a way for businesses or individuals to accept cash or check payments from anyone. That’s without the paper, of course.
On the Ofiicial Square News page, Grassadonia adds:
“Individuals aren’t the only ones who don’t like checks. They’re inconvenient for businesses, too, whether you’re a landlord, a lawyer, a dogwalker, or an interior decorator. We think everyone should have access to a fast, affordable way to get paid, without the inconvenience or lack of security of cash and paper checks.”
Here’s how a $Cashtag works:
A business using Square Cash creates a unique name for its $Cashtag. It could be something like:
Then, when another Square Cash mobile app user wants to pay your business, all they need to do is attach a payment to that $Cashtag.
Square thinks that $Cashtags are a very marketable service for businesses. They can be added to business cards, a website, and even on a YouTube video.
If your payee doesn’t have the Square Cash app, they can visit Cash.me/$YourCashtag and make a payment from there.
The money you accept via $Cashtags is deposited directly into your bank account. Square takes 1.5 percent of every transaction using the service.