19 November, 2014

Snapchat has announced a new mobile payments feature: Snapcash.

Snapchat has partnered with Square on a Venmo-like payment feature called SnapCash.
Snapcash lets you quickly message cash to friends once you've entered your debit card. All the transactions are handled by Square.

This project has been in the works for a while.Here's how SnapCash works: Send a private message to a friend like you normally would on Snapchat. Type in a dollar amount. The app then recognizes the amount and a green "$" button lights up. If you want to send that amount, just press the button.

Snapchat won't keep your debit card information on file. Instead, Square keeps it all. So Snapchat powers the money message, and Square deals with the messier financials. Thats a nice thought Kudos to the team. Sending money over SnapCash automatically turns that person into a Square account holder, so it should help Jack Dorsey's multi-billion-dollar payment startup onboard the young demographic (teens and 20-somethings) that Snapchat attracts.

Venmo, an eBay owned peer-to-peer payments solution, isn't profitable, so this isn't a revenue lay-up for Snapchat. Venmo is also popular among college students, so even though Snapchat likely has more users, SnapcCash has its work cut out for it.

Whatsapp whats your next big move - Blue Tick marks didnt impress me much. Till then Happy Snapcash-ing!