Snapchat now lets you send money to other people? There is NO way this is true….
According to a recent TechCrunch article, Snapchat, through partnership with Square Cash, now allows users to send money to each other through the text-chat feature. Users can now add their debit card, type in the amount they wish to send, and hit the green pay button to instantly send money. Aside from user to user, however, Snapchat also wants to enter the ecommerce and payments market for merchants and businesses as well. An example of this would be that a company like Walmart would send a snapchat regarding a particular product, and a user can reply to that snapchat by paying for the product.
Image Courtesy of Flickr User Global Panorama
Snapchat could also, if all goes well, use this feature to cross-reference the data from the debit cards to improve ad targeting by also gathering data about what users are buying. As for the privacy concerns regarding this, Square Cash would be held responsible because they essentially hold all account information. Currently, this “Snapcash” option is only available on Android and with Visa and Mastercard debit cards, but Snapchat is looking to expand soon to iOS, credit cards and banks.
In my opinion, I don’t think I would use this feature, or at least initially. Having grown up around parents that have always been dubious about online purchases and online transactions, I am always hesitant with these kinds of applications and features. For a long time I did not use similar platforms like Venmo and PayPal, regardless of all the security measures outlined. Countless times friends proved to me that they used PayPal on the daily and never ran into a problem, but I just could never appreciate it and be a committed user.
For me, while all of these tools provide a clear convenience, I still prefer to go to a brick and mortar and complete an in-person transaction. I like knowing instantly that the transaction has successfully completed and that I have received my money or product without any issues. That being said, however, I did finally succumb to Venmo, and have found great convenience with it. It is currently the only payment service/application I trust, and probably will be the only one I trust for many years to come. Snapchat’s service may gain several users, and attract millions, but will have to really prove its success before I even think about using this feature.
Featured Image Courtesy of Flickr User 401(K) 2012