Squaring up to PayPal – Square launches P2P payments

Square has unveiled its P2P payment system, Square Cash, allowing users to send and receive money via email.

Square has unveiled its P2P payment system, Square Cash, allowing users to send and receive money via email.

The system works by the payer emailing the payee and Square, setting the subject line as the payment amount in dollars. If either party is not registered with Square Cash, they will be prompted to enter their debit card details, thereby linking their debit accounts to the service.

Square Cash product manager lead Brian Grassadonia said: "Square has always believed in creating solutions for individuals and businesses that work with the tools they already have in their pocket."

"Square Cash makes it convenient to send money to anyone — without making them jump through hoops to retrieve it. Now it’s easier than ever to split a bill, send a birthday gift, or settle up with a friend, no matter where you are."

The company says that the service works from any email carrier and that it is not currently charging for the service.

Critics have queried how secure the system is, but Square defended its security arrangements, saying that automated SMS notifications both alert account holders to payments and allow them to suspend any transactions.

The system also limits weekly transactions to $2,500.

However, the minimal nature of the service has left some observers wondering if hijacking payments could be as easy as hacking an email account or using a spoofing program to deceive Square Cash into accepting payments from a fake email address.

Grassadonia said: "The product is 100% secure. Nobody is going to get taken advantage of via spoofing."

Square declined to provide any further details on its anti-fraud precautions.

 

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