As of Monday November 17, Snapchat revealed a new update and the ability to not only send pictures, but money also. Imagine if Facebook users could send money via Paypal to other users, Snapcash is similar to that, but through Snapchat. Yes, real money transactions will allow snapchat users to send other users money through the chat function with ease. CEO Evan Spiegel and the payment company Square have joined to make Snapcash a reality.
Snapchat has lost the trust of some users, will they feel secure using this new feature? Due to issues with hackers and possibly stolen information, some users have become skeptical of the companies’ ability to defend their users privacy. Actually, Snapchat is not in charge of the security in this situation, all of the money handling will be placed on the shoulders of Square, a company ready for the task. The bank and debit card information will be stored so it may be used again by the user, Square is responsible for maintaining all financial information that resides in the app.
When someone signs up for Snapcash they create a different account specifically for Snapcash. This Square Cash account is necessary to keep the financial information of the user. So far, only Visa and MasterCard debit will be accepted. For now, Snapcash is only possible for those in the U.S. that are at least 18 years-old.
The partnership between Snapchat and Square could make some huge waves in the world of business depending on how often users use the new function. It is not known if Square is getting a percentage for each transaction or something else entirely, as both companies have declined to comment about the specifics of their collaboration. A trailer has already been made to lightheartedly show off how users can make it digitally rain on their friends.
Snapchat started primarily as a photo sharing app but has now expanded to new heights. Snapchat Stories made it possible to say more than what a single image could offer, yet it did not stop there. The application also has a chat function now that makes it possible for users to message their friends through the app. According to Digiday, Snapchat has also been talking with companies such as Buzzfeed in hopes of creating a discover section. Such a partnership would likely bring video and music into the app. An app that handles talking, pictures, videos, music, and even money transactions could lead to the demise of many other apps and businesses.
Using the chat function, users on Android and iOS will be able to send money to other users with magnificent ease. When a user in chat includes a dollar sign indicating specific amount of money, the chat button will transform to the color green, which means this chat has become a financial transaction, pressing the button will digitally send them money. Snapcash has the potential to substantially change Snapchat, even if it is mostly used by friends on bar night.