Following the likes of Daum Kakao and LINE, Snapchat jumped into the payments market with a new service that allows its users to send and receive cash.
The firm has partnered with mobile payments outfit Square to launch Snapcash — a platform for transfering money to other users of the Snapchat app by sending them a message containing the dollar sign, followed by the amount.
It is available in the US to anyone who is 18 or older and has a Visa or MasterCard debit card that can be linked to the service.
“The product you’re seeing today is fast, fun, and incredibly simple. After you enter your debit card, it’s securely stored by Square, who will swiftly process your payment and send cash directly to your friend’s bank account,” the company said in a blog. This means that users opting for the service will automatically have a Square Cash account created for them and their financial details will not be saved on Snapchat’s servers.
The blog also noted that the idea was inspired by Square Cash, which lets users send cash via emails: “We loved it so much that we wanted to create something with them that felt Snapchat-y.”
Snapcash is already available as a Snapchat update for users of Android devices while an iOS version of the product is set to be out soon.
Snapchat isn’t the first to jump on the mobile payment bandwagon. South Korea’s Daum Kakao launched a similar service for its KakaoTalk users while another messaging firm LINE Corporation said it will base its future services around its LINE Pay offering.
Facebook CEO Mark Zuckerberg said in the summer that there would be “some overlap” between payments and its Messenger service and David Marcus, former president of eBay’s PayPal division, joined Facebook to head up its mobile messaging efforts.
“The payments piece will be a part of what will help drive the overall success and help people share with each other and interact with businesses,” Zuckerberg said.