Snapchat, the app that allows you to send video and photo messages that "disappear" after 10 seconds or less, has partnered with Square Cash to provide peer to peer money transactions called, "Snap Cash". In the chat section of the app, simply type a dollar sign ($) followed by a cash amount and press the green button to send money to any of your Snapchat contacts.
This could be the beginning of a lot of different trends, benefitting a lot of different types of people.
Let's talk about the practical uses of Snap Cash: https://www.youtube.com/watch?v=kBwjxBmMszQ
- In the video above, Snapchat demonstrates the new capability as an easy way of splitting the bill. Like, Venmo, another p2p transaction app, Snap Cash can be used to transfer money between parties for payments, along with a "disappearing" message, photo or video. Unlike Venmo, instead of a feed of your and your friends' transactions, the transfers will remain private.
- This could also be a convenient way for Snapchat to sell its own products, or for other social media savvy companies to sell theirs. The Snapchat element of Snap Cash definitely sets it aside from the pack and offers an interesting spin on money transfers that Vemno, Google Wallet and other p2p apps simply lack. This is only because, of course, Snapchat was already an established and popular consumer app before they entered the p2p banking scene. This also means millions of users who may not have been previously interested in using finance apps will now, automatically have this access with the update of the app.
- The last scenario is a little more…nefarious. If you're at all familiar with Snapchat, you're probably also familiar with its reputation as "Sex Tech". With the advantage of limiting how long your content can be viewed for and a notification if the receiver has saved your message, Snapchat soon became a popular platform for sharing more…ahem...sensitive content. There is a clause, of course. Snap Cash is limited to debit card holders 18 and older.
What other uses will Snap Cash have? What other consumer apps might jump on the p2p banking bandwagon? Rant and rave below.
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