This week saw the launch of Snapcash, a money transfer service launched by the popular app Snapchat, with an all singing, all dancing promotional video to boot.
As Financial PR specialists, we were particularly interested in the new function, which allows Snapchat users over the age of 18 to instantly send money to friends for free via private messages. At the moment it’s only available in the US, but there are plans to expand this should it prove popular.
Users are able to swipe into the chat function on the app and enter the dollar sign followed by the amount they want to send, transferring cash to their friend at the touch of a button.
This is Snapchat’s first joint venture and is the product of a partnership with Square, a payment processing company that will securely store the debit card details of those using the function.
The introduction of this technology to an app with such a young audience shows how advancements in payment technology are spreading into the mainstream more and more. With approximately 700 million photos and videos being sent via the app every day, the technology will potentially be used millions of times each day.
Our client Tuxedo Money Solutions, a payment technology provider, notes that the emerging payments market is really beginning to flourish, with reduced fees on cross-border payments an area that could be game changing for the industry. The growth of virtual card payments and development of alternative payment platforms like Snapcash mean international transfers are becoming increasingly accessible.
Twitter users have taken to predicting what could be next for Snapchat after hearing its news this week. @rileysroberson’s ‘Snackchat’ idea was our favourite. Biscuits at the touch of a button? Now there’s a thought…