It’s been a buzz recently over the latest and greatest launch by Snapchat – Snapcash. A way for Snapchat users to send money to friends with a couple clicks of their mobile keyboard. A new competitor to the mobile payment world, specifically for the millennial and generation Z audiences. But will it work?
There have been many talks about whether it’s safe to use and if the privacy concerns that Snapchat has had are truly over. If you can’t protect the users’ images, how can you protect their cash? Apparently, accordingly to Snapchat, Square is their way to ensure the safety of people’s money and their privacy settings have changed as well.
I was curious to see how the typical Snapchat user (college kid, uses snapchat multiple times daily, and uses it to communicate more often than text at times) thought about the new Snapcash offering. The results:
Me: Do you trust Snapchat with sending money?
SC User: No.
Me: Why’s that?
SC User: After the recent issues with photos not being safe, the last thing I want is to connect Snapchat with my bank account.
Me: If it was safe, would you consider it?
SC User; No, I use Venmo.
Me: Would you consider switching?
SC User: Not really. Everyone at school uses Venmo. Why would we switch to something we aren’t sure about? Especially when we have something that works?
Although this user was hesitant, I do believe that some Snapchat users will consider taking the plunge and checking it out. More so in cases where it’s easier for them and they already use it so often. For those who use Venmo, and others – it may take more convincing before they change their current user/consumer habits.
But what does this mean for brands? A new opportunity.
Snapchat has been a place where brands could win with exclusive content, contests, product launches, events, and opportunities. Now it’s a potential opportunity to allow that audience to purchase exclusive products, event access, and more – with the click of a button.
If your customer is Millenial or Generation Z, this may be something you’d like to further investigate. Here’s some further reading for you:
This post was originally written for Startup Fashion.