This week Team SnapChat sent out a snap to all of its users introducing the new service called “SnapCash!” The video demonstrated how any user can send or receive cash from any other user by simply typing in the the dollar sign ($) followed by the amount sending. It seems like a space that more and more companies are getting involved in… The capability of easily sending money via a mobile device. This is the core functionality of applications like Venmo and Dwolla, however other companies like PayPal have made advances with their UX to promote this function more and more.
The partnership between SnapChat and Square Cash has really opened up a lot of doors for the future of SnapChat. A service that didn’t require your real name, now will need that information if you decide to submit your Debit Card or ACH information. This information can be EXTREMELY lucrative for the popular messaging service. The data itself is valuable however this opens up the potential for ad targeting. SnapChat has made no comments on this or hinted at any of their future developments, however we can definitely see the monitization aspect ramping up, especially with Sponsored Stories now coming into play (seen right).
Many people questioned and heavily criticized SnapChat CEO Evan Spiegel for turning down $3 BILLION offered by Mark Zuckerberg when the application was making zero dollars, but the man clearly has a visual for the mobile application that is starting to come to fruition. After turning down this offer in 2012, SnapChat raised over $50 Million and received a $2 Billion evaluation on the company.
SnapChat will no doubt be expanding upon this Square Cash service without forcing its users to abandon their usernames and enter their personal information into the application, as it is optional. Users may be weary of using this system at first due to their previous security breaches, but SnapChat will continue to offer their messaging and new payment services for free in hopes to collect the targeting data, which will lead to new innovative services that are very specific to each individual user.
It is yet to be proven if turning down Zuckerberg’s $3 Billion offer has been the right decision, but this is certainly a step in the right direction.
Here’s the extended video that SnapChat recently released to it’s users demonstrating the new service and how easy it is to send and receive money through the growing application:
Will you be using this new service?
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Check out our other posts about Snapchat.