snapchat makes it rain: a pov on snapcash
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Snapchat Makes it rain A POV on Snapcash November 2014
Confidential © 2014
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contents § What is Snapcash? § Who will be using it? § Is it trustworthy? § Considerations for Brands
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What is snapcash? • Snapcash is Snapchat’s new peer-to-peer payment service
powered by Square.
• The service lives within the SnapChat app – once users have uploaded their debit cards, they can simply type a dollar sign and payment amount in the chat box. The money will automatically be sent to the chat recipient.
• With the ease of payment and the catchy “make it rain” feature, Snapchat has clearly taken its current audience of millennials and teens into consideration.
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Who will be using it?
• Because there’s no additional sign-up process for Snapcash, technically all Snapchat users are now on the service (meaning lots of teens and millennials).
• However, users will still need to link their debit cards to Snapcash, powered by Square, in order to use the service.
• This means that only users 18 years old and up will actually have access to Snapcash.
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Is it trustworthy? As an app that gained popularity on the coattails of selfie culture and ephemeral nude photos, will people trust Snapchat as a payment option?
Last year’s Snapchat security breach, which resulted in 4.6 million users’ usernames and numbers being published, has many people skeptical of Snapcash’s privacy policy. While the partnership with Square may help to offset some of this speculation, an ongoing poll on MarketWatch shows only 24% of people are currently willing to send money though Snapcash.
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• While social mobile payment services are nothing new (hey, Google Wallet and Venmo), converting a social app INTO a mobile payment service is new territory. This begs the question, will other social platforms follow in Snapchat’s footsteps?
• Knowing that brands like 16 Handles have successfully used Snapchat’s ephemeral photos to create a sense of urgency in the past, is there a way to capitalize on this new payment feature in a way that amplifies the experience? • For example, could the platform be a combined retail experience where fans get a coupon snapped
to their phones, which they then use within 10 seconds buy an item using the Snapcash feature? Could fans snap the brand a picture of a specific purchased product to receive cash back from the brand via Snapcash?
Considerations for brands
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THANKS! Questions? Thoughts? Nikki Siegel, Senior Community Manager [email protected] Mary Snauffer, Senior Social Strategist [email protected]