Square Cash has rolled its Cash Virtual Card into its iOS app, which enables customers to create a virtual Visa debit card so they can spend their Square Cash anywhere that accepts Visa online.
According to a report, the new service can be used at a slew of retailers online, including Amazon. With the service, the shopper would enter the card number for the virtual Visa card during checkout. Square Cash is reportedly also working on making virtual payments compatible with Apple Pay and Android Pay. That would enable customers to use Square Cash money to tap and pay in offline stores that take mobile payments. The move on the part of Square Cash makes it more similar to PayPal, which lets users pay with PayPal cash with a host of retailers and even in some stores. With Square Cash, however, consumers can only spend money that is in the app and cannot draw funds from a backup bank account that is linked to Square Cash.
The report went on to note that Square Cash is overhauling how instant deposits work as it tries to make money from transactions on its app. Users who get a payment can withdraw the money to their bank account if they agree to pay a 1 percent fee to access same-day withdrawal. If they balk at paying the 1 percent fee, they will get the money the next business day.
Square managed to redeem its disappointing Q1 performance with healthier Q2 earnings. The quarter saw the stock price plunging by 12 percent, as investors showed concern with Square’s increasing expenditures. However, payment volumes were strong in Q2, and losses were reined in. Square has struggled in 2016 amid a rift with Starbucks and negative media attention on CEO Jack Dorsey.