Photo sharing app Snapchat partnered with Square Cash to introduce Snapcash— a money transferring service. Snapchat users above the age of 18 can store their debit card information using Square Cash’s technology. Then, once a user types a dollar sign and a number in the Snapchat’s messaging feature, the app will recognize the user’s intention to send money.
Unlike Snapchat’s famous disappearing photos, the money won’t disappear but be transferred to the recipient’s bank account. After hitting send, users then slide their fingers on the screen (as if dealing out the money) to activate the transaction. An outrageous video, of course initially sent from Team Snapchat to every app user, now has the full video available online.
In a blog post, Snapchat disclosed that they approached Square Cash with a prototype. While the blog praises Square Cash’s security system, it looks like Snapchat is also relying on their users’ trust (which they already have considering people use the app to send hilariously ugly selfies or provocative nude photos). This seems evident considering the video doesn’t even mention teaming up with Square Cash until the last second or at all in the jingle.
Snapchat’s ability to churn out new features keeps the app relevant and engaging like the personal My Story option, the curated Our Stories version, and new advertising opportunities. Snapchat’s target audience, young adults, are already comfortable with mobile banking apps and money transferring services like Venmo. By making the transaction fun with Snapcash, Snapchat will hope their audience will delete these alternatives.
We can’t wait to see what Team Snapchat has for us next, but in the meantime do you think you’ll use the app to send money to friends? Do you expect that when people are at the bar taking My Stories, they will then also use the app to split the tab? Or will users be more hesitant to use Snapchat for financial purpose?