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eBay underperforms after Square launches e-mail-based payments service

  • Square Cash, a new service from the mobile payments upstart, allows users to send payments for free via e-mail simply by typing the payment amount in the subject line and sending a CC e-mail to a Square address. Users only need to provide Square with debit card info - no accounts have to be created, or bank account numbers provided. Android and iPhone apps have been launched.
  • The product launch has led eBay (EBAY -0.1%) to trade near breakeven on a day when the Nasdaq is up 1.1%. Square and PayPal each already offer several competing offline/mobile payments products/services; Square Cash takes aim at both PayPal's core payments services, and the mobile payments platform offered by Braintree's Venmo unit (soon to be in PayPal's hands).
  • However, unlike Login and Pay with Amazon, Square Cash isn't a direct threat to PayPal's merchant transactions. It arrives shortly after Google made it possible for Wallet users to send money for free via e-mail, and added a money-attachment feature to Gmail.
  • PayPal has been busy adding new payment options (I, II) to its apps.
Comments (1)
  • I just tested Square Cash, sending $1000 to my wife. It works great. Truly no fee!

     

    However, no corporation offers a free service altruistically. I think Square is doing this in the same way Google does: get attention to Square other products & services that have cost by offer a taste of something good.

     

    I think Square Cash is a wonderful way to send money to friends and relatives.
    16 Oct 2013, 03:30 PM Reply Like
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