Square's Cash iOS application received a snazzy new ability on Tuesday in a new version of the application dubbed version 2.1. Now, users can take advantage of what the digital money-handling service calls "nearby payments."

With nearby payments, you can now send money to people using the Square Cash application on their device using Bluetooth, which is a short-distance wireless means of transmitting data. The feature does require iOS 8, so the two users must be running iOS 8 and the latest version of Square Cash to take advantage of this feature.

Because nearby payments uses Bluetooth low energy, making use of the feature won't drop your battery percentage dramatically. In terms of security, the Square Cash application will allow you to configure who you're visible to. You can make yourself visible to everyone, or to only your contacts.

Other improvements in this update include the ability to quickly accept or decline money requests via iOS 8's new interactive notifications, which means when you receive a notification banner saying that someone wants money, you can easily respond via the notification without ever leaving the application that you're currently in. The update also adds a variety of bug fixes and stability improvements to help with improving the user experience.

Existing users of the Square Cash application will find this update under the Updates tab in the App Store application. Alternatively, you can download the latest version of Square Cash for free from this App Store link.

Sources: App Store