Apple Pay now works with Square Cash 'virtual debit cards'

Posted:
in iPhone edited December 2016
Minutes after Apple Pay chief Jennifer Bailey offered a brief update on Apple's payments product at Re/code's Code Commerce conference, Square CEO Jack Dorsey on Tuesday announced immediate integration with Square Cash virtual cards.




Debuted onstage in San Francisco, the new Apple Pay integration allows Square Cash users to pay for items wherever Apple Pay is accepted.

The feature is enabled through Square Cash's virtual debit card system, which debuted in September through a partnership with Visa. Like a traditional debit card, Square's virtual version lets customers apply their Square Cash account balance to purchases made through online retailers.

"I've been using this as my primary card for about two months," Dorsey said, adding that he uses his card on purchases like Netflix and Blue Bottle coffee.

Square Cash started life as a free peer-to-peer payments solution, but recently moved on to retail thanks to the virtual debit card initiative. Today's Apple Pay integration brings Square Cash into brick-and-mortar shops that accept mobile payments, further legitimizing the service as a viable payments solution contender.

Comments

  • Reply 1 of 8
    Not sure why you'd use those over your normal debit card in apple pay. I don't know anyone that uses square cash, much less keeps a balance on it. 
    mike1
  • Reply 2 of 8
    Rayz2016Rayz2016 Posts: 4,728member
    securtis said:
    Not sure why you'd use those over your normal debit card in apple pay. I don't know anyone that uses square cash, much less keeps a balance on it. 
    Not sure I get this either.  You load up Square Cash so you now have a card that's not directly connected to your bank account? Then you add that to Apple Pay which hides your bank account anyway?
    mike1
  • Reply 3 of 8
    digitoldigitol Posts: 108member
    Yea, not sure whats up here either. Glad to see any adoption of ApplePay I guess. :smile:  Apple Pay is absolutely excellent, it's especially sweet since the chip and pin system is such a slow, messy, annoying terrible disaster. 
    slprescottmike1
  • Reply 4 of 8
    zimmiezimmie Posts: 274member
    Square Cash's virtual debit card is competing with PayPal's debit card, not with traditional bank accounts linked with normal debit cards. Both of those companies are effectively unregulated banks. PayPal is widely acknowledged as being an awful company (freezing accounts for no reason and with no recourse, for example). Square is trying to take them on more directly. ApplePay support for the virtual debit card adds a capability I do not believe PayPal offers with their physical debit card.
  • Reply 5 of 8
    A virtual debit card inside Apple Pay is a good solution for someone who doesn't have a relationship with a traditional bank. Those people have so far been forced to use cash (which is a good thing, as when it's gone, it's gone). However, those people can't really participate in the online side of the consumer economy. Or, if they find a way, it comes at a cost. There are some services that allow you to place cash onto a physical debit card (see Walmart, AmEx Serve), but the fees are ridiculously high.
  • Reply 6 of 8
    digitol said:
    Yea, not sure whats up here either. Glad to see any adoption of ApplePay I guess. :smile:  Apple Pay is absolutely excellent, it's especially sweet since the chip and pin system is such a slow, messy, annoying terrible disaster. 
    I agree. It's much less painful than using the chip system. Unfortunately only a handful of companies I frequent use it. 
  • Reply 7 of 8
    It seams like a step below the online banks like "Simple". I think the idea of using this card over a banks debit or credit card is that if it is stolen it is not connected to your accounts, so for online shopping concerns there is less risk (in less you keep larges sums of money on the app). Also this could be useful for those who have jobs that were once cash and are not accepting cards via square pay they can use that money instantly rather than it transferring to a bank. As things move more and more toward a cashless marketplace these features will find their niche if not widely accepted. If paying people via SnapChat "SnapCash" (which I believe is a partnership with Square Cash) is a thing this is way more normal. Good to see they are moving their product forward rather than just stagnant. that said who knows
  • Reply 8 of 8
    beedy17beedy17 Posts: 1unconfirmed, member
    So, If my debit card is not supported by Apple Pay I can use Square Cash instead? And if so will I have to preload money onto the app or can I use the app and have it pull from my debit card?
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