Apple Pay now works with Square Cash 'virtual debit 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.