Canadian Fintech startup ChangeJar Inc has launched ChangeJar Mobile, an app that lets users receive or pay with change from cash transactions using their smartphone.

According to a press release, "ChangeJar Mobile supports and improves — instead of replaces — cash transactions by making them simpler, faster and more convenient." 

ChangeJar works by crediting loose change that results from a cash transaction to the ChangeJar Mobile app on the user's phone. Users can subsequently use their ChangeJar balance to make purchases or tip for service at participating businesses. The app also is enabled for P2P transactions.

The ChangeJar Merchant app integrates with existing iPad-based point-of-sale terminals. The smartphone app — available at the Apple App Store and Google Play — is free to users and merchants pay no transaction fees.

"ChangeJar takes advantage of the benefits of using cash for everyday purchases without the downsides of dealing with fistfuls of coins," said Tom Camps, ChangeJar founder and CEO. "By capturing the value of change on your mobile phone, ChangeJar is making cash easier and faster for everyday retail and P2P payments. Consumers get the convenience of electronic payments and merchants get a great tool for attracting and rewarding customers — all without transaction fees."

Currently, the service is offered at participating cafes and retail stores in Ottawa, Canada. The company plans first to increase availability in Ottawa, and then expand to additional Canadian cities later this year. A list of ChangeJar merchant locations can be viewed at the company'' website.

According to the release, ChangeJar Mobile is the first in a wider range of consumer and merchant solutions meant to "connect and maximize the benefits of both cash payments and electronic commerce."