Square’s New Cash App May Cut Into PayPal’s Market Share
Square’s new app known as Cash allows a user to send cash to anyone with a mobile phone number or email address. The app’s other options could make Square a force in the mobile payment world, and pose a threat to the dominance of PayPal.
Among the many options Cash offers users is the ability to add notes to payments and receive push notifications when transfer requests arrive. The app offers a referral system that pays users $1 for each newly-invited user who signs up for an account. Users can import address books and profile pictures for their Cash accounts, and they can benefit from a unified contact list on their phones.
What makes Square Cash a threat to PayPal is its ability to combine a user’s phone book contacts with a messaging system, similar to social messaging apps like WeChat, WhatsApp or LINE. This feature is what helped WhatsApp double in size from 300 million to 600 million users in one year. Square Cash could grow at the same rate, especially with the $1 referral incentive.
Square Cash may not send PayPal into bankruptcy, but it could pose a threat to PayPal’s profits. Fortunately for PayPal, there are already programs in the works, such as One Touch, to help cement the company’s dominance in the mobile payment market.