Square upgrades Cash app for text-based P2P payments; reportedly in talks to raise $200m

Square upgrades Cash app for text-based P2P payments; reportedly in talks to raise $200m

Square has revamped its Cash P2P payments app, enabling users to send and receive money via text. Meanwhile, reports suggest that Jack Dorsey's firm is in the process of raising some cash itself, talking to potential investors about a $200 million funding round.

The latest version of Square Cash gives users the ability to send or request money from everyone in their address book using just their phone number, even if the recipient doesn't have the app. Customers could already send money using email addresses.

Once a user has linked their debit card to the app, they can send money to a mobile number. The recipient gets a text informing them of the news and providing a link so that they can register their card so that the money is deposited straight into their bank account.

The app has also had a design refresh and now offers the ability to keep track of payments and requests via push notification, as well as a new profile feature for linking email addresses and phone numbers to accounts.

Meanwhile, Square is in talks with potential investors, including the Government of Singapore Investment Corporation, in an effort to raise around $200 million at a $6 billion valuation, according to CNBC, citing sources. Square has refused to comment.

Rumours have been rife in recent months that Square's business is floundering. Despite revenues of $550 million, the firm posted a loss of around $100 million in 2013 and has already burned through more than half of the $340 million it has raised since 2009 as it struggles with the thin margins on the 2.75% fees it charges merchants.

With Amazon moving onto its mPOS patch, earlier this month the company published a defensive blog post explaining why "myths" about it and a potential sale are "totally bogus".

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