Snapchat introduces new money transfer service called Snapcash
Popular mobile app Snapchat has become the latest social application to embrace mobile commerce. Snapchat has rolled out a new feature called “Snapcash,” which allows users to transfer money to one another. This represents Snapchat’s first entry into the mobile payments market, putting it competition with other companies therein, such as PayPal and Venmo. If Snapchat can compete effectively, it could quickly become one of the most popular mobile commerce apps.
New feature allows users to send money to their friends using a simple message
Snapchat has managed to garner a great deal of fame in a relatively short amount of time. The app allows people to communicate with one another through photos, short videos, and text, all for free. The new Snapcash feature will allow users to make peer-to-peer money transfers, using a Visa or MasterCard debit card. Money transfers can be made with a simple message including a dollar amount. The app is capable of recognizing currency symbols, and will request to initiate a transaction when these symbols are used.
As much as $250 can be sent through Snapchat every week
Snapcash will allow people to send as much as $250 every week, but this limit can be upgraded to $2,500. Trying to send money beyond the limit will require users to provide additional information, including Social Security number for security purposes. A single user can only receive $1,000 in a 30-day period. Recipients receiving more than this amount in that time frame will also be asked to provide additional information to verify their identity.
Some may not be comfortable with sending their money to friends through the new Snapcash feature
Whether or not people will use the new Snapcash feature is difficult to say. Snapchat was recently the target of a major cyber attack, and this was before the app even had a mobile commerce feature. Consumers may not be comfortable with using the application to send money to their friends, questioning Snapchat’s ability to protect their financial information from those that want to exploit it.