On Monday, the Californian mobile payments company Square announced a new feature that will allow users of its Square Cash app to store money in their accounts. Instead of sending funds to a bank account, the service, called Cash Drawer, will let users to keep their money in the app.
The new feature works like other digital wallets and is similar to those offered by PayPal, Facebook, Google Wallet and Venmo, what will likely urge retailers to use the service.
? LAUNCH! Now you can keep some money in the app, and cash out instantly whenever you want. Check it out! pic.twitter.com/l815tYAaXf
— Cash (@SquareCash) February 29, 2016
“A business may wish to turn on the feature so that they can easily track and manage their business payments in one place, rather than have them stream into their bank account,” a spokesperson for the company told TechCrunch.
Last year, Square launched a new system in an effort to improve the service of its business users, including coffee shops, artists and taxi drivers. Called Cashtags, the service allows businesses to create a unique address that can be used by customers for making payments.
By using the system, customers will be able to pay for services without the need to provide additional data, such as their email or name. Unlike the traditional account, the Cashtags system will transfer all payments directly into bank accounts.
Rather than using their bank accounts for transferring funds, the Cash Drawer’s users will be able to send money from one drawer to another. Besides, there is an option of sending money from a drawer to a bank account. To view your balance, you need to tap ‘Cash Drawer’ on the main screen or tap your profile icon. In order to withdraw money, you just need to click on the Cash Out button.
The Cash Drawer will likely make it more convenient to hold money for certain payments, like rental charges. The service is optional what means users will be able to choose whether to use it or not.
The offering will be available for users of both iOS and Android devices. To integrate the Cash Drawer, you will have to use the latest version of the Square Cash app.
Square Cash is a P2P platform allowing users to make instant deposits using an email address. Since the platform’s launch in 2013, it has processed more than $1 billion in transactions.
Founded in 2009 by Twitter’s interim CEO, Jack Dorsey, Square has turned into one of globe’s the most valued unicorns within the fintech industry. The company, which attracted hundreds of millions from such prominent investors, as Kleiner Perkins, Richards Branson and Starbucks, is now valued at $6 billion.