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I was going to look for the 3-5% fee and be snarky. Free. OMG. done done done. For as long as it's free to .5% holy sheet.
Where did you get the .5% figure?
This will be very handy indeed for a number of circumstances, for the low, low price of free.

Trust is a big issue though, people know paypal (mostly from ebay), merchants and techies know and generally trust square so getting that hurdle cleared will be a big deal.

I'll use it though for sure. An overseas option for cheaper than my bank (around $30 once everyone has had their slice), competitive with Xoom and I can see a lot of expats using this.

Really valid alternative to Venmo (soon to be owned by Paypal through the Braintree acquisition)
If it's really free and remains so, it'll be cool. Oddly enough, I'm in a tiny little niche market where there are a few folks who've had really nasty experiences with eBay, and hence refuse to do business through PayPal. The accepted alternative right now is they send me a check, but this thing looks like a good alternative.