Snapchat, in partnership with financial services startup Square Inc., has unveiled a peer-to-peer mobile payments product called Snapcash.
Users can access the feature by typing a cash amount in a private chat window with a friend. A green dollar sign button will appear to send the payment. Only users above the age of 18 can currently access the new feature. Payments must be made with a Visa or MasterCard debit card.
Similar to other services such as Venmo or PayPal, Snapcash requires users to upload their debit card and bank information. Square will handle storing the sensitive data and processing the peer-to-peer transactions. Snapchat said it wanted to rely on the expertise of the San Francisco company, which launched its own money transfer service Square Cash last October.
“We set out to make payments faster and more fun, but we also know that security is essential when you’re dealing with money,” Snapchat said on its blog.
The Venice startup filed two trademarks in July that hinted at its venture into the mobile payments market. Monday’s announcement is one of several recent updates that show Snapchat’s intention to make money. Snapchat released its first ad last month.
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