#Snapchat Now Lets You Send Money Too

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Snapchat has long promised to
make your online messages
disappear. And now it can help
make your money disappear, too.
On Monday, the mobile messaging
company announced a partnership
with payments startup Square,
saying you can now use the
Snapchat app to send money much
as you would one its ephemeral text
messages. The app now recognizes
a dollar sign typed in to the
messaging field and serves up a
green button for sending the money
from a connected debit card.
Behind the scenes, Square will
store the card’s number and handle
the transaction.
Messaging services are an obvious
way to handle peer-to-peer
payments, though Snapchat CEO
Evan Spiegel told Recode that he
doesn’t see his company competing
with the likes of PayPal or Venmo
in the suddenly red-hot payments
market. At least for the moment, it
doesn’t look like Snapchat is
charging a fee to use what it calls
Snapcash.
Still, the deal allows Snapchat to get
the jump on Facebook, which seems
likely to merge messaging and
payments at some point down the
road. And if the new Snapcash
service catches on, the company
could easily pivot in this direction.
Such a move might be particularly
attractive because the three-year-
old company is just starting to
figure out how to generate revenue.
Snapcash is powered by Square
Cash, which Square also offers as a
standalone service for sending
money via an email. * Users who
sign up for Snapcash are signing up
for a Square Cash account. In both
cases, the products are designed to
pare down the payments process to
as few steps as possible.
Though many options are available
for sending someone else money
using a smartphone, no one app has
become dominant. Unlike many of
those apps, however, Snapchat is
already used by an enormous
number of people. With millions
already sending Snapchat messages
every month, a nudge might get
them sending money as well.
Clarification (November 17, 6:30 pm) :
Updates to clarify Snapchat’s
payment service runs on Square
Cash.

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