...and the winner is....the consumer!
Just days after Facebook sent shock waves through the peer-to-peer payments world, Square announced $cashtags, simple addresses that will allow individuals, and now businesses, to accept payments. In a way, today’s announcement continues Square’s suite of services for businesses, but it is also likely another move to get cards on files, a game of scale in which it considerably trails Apple, Facebook, and Amazon. Square Cash for businesses is called Cash Pro. Merchants are not limited in the amount of money they can transact, but will pay Square a 1.5% fee for accepting payments. This is cheaper than accepting a PayPal payment and Square’s own 2.75% for card transactions, but businesses can cut better deals with the credit card networks, and Facebook could potentially undercut it with a 0% fee down the road.