Less than a week after Facebook announced its plans to turn its Messenger app into a person-to-person funds transfer channel, Square Monday announced a new feature that allows businesses in the U.S. to use Square Cash to get paid. 

"We deposit payments directly into your bank account (as opposed to a holding account), and offer an aggressive and affordable professional rate of only 1.5 percent," a company blog post said. 

Square will give users a unique way to identify themselves using "$Cashtags." The feature allows a business owner to create a personalized name and get paid privately and securely through Square Cash, according to the blog post. Cashtags can be posted anywhere to let consumers know they can pay with Square Cash, either from the Cash app or on the Web at https://cash.me

"We think $Cashtags are a fantastic marketing service that lets your customers, donors, fans, or even friends pay you quickly and securely," Square said. "Many artists, musicians, and social media stars now accept payments with their $Cashtags."

Watch the video below to see the service in action: