Snapchat adds a payment option

Published on 21 November 2014 by in Latest News

Snapchat has seen rapid growth in the digital world since it was created in 2011; Facebook reportedly offered to buy the brand for $3billion (£1913, 936,670) last year. With over 100 million active Snap-chatters, sending over 400 million snaps every day, its mobile app user growth is reported to have increased 67 percent since 2013.

iStock 000037778320 Small 200x300 Snapchat adds a payment optionRecently Snapchat revealed it has added a payment option to its app through a deal with Square Cash, called ‘Snapcash’. With Google Wallet and Venom trying to take a B2B approach to peer-to-peer payments, Snapchat has debuted the payment option for the consumer market. Now, users can add a debit card and type a dollar amount into Snapchat’s text feature to instantly send a friend money. The feature is available in the US on Android and is coming soon to iOS.

The payment option was first rumoured in July, alongside discussions as to whether it could introduce ecommerce and payments to merchants within the platform, similar to Twitter’s ‘Buy Now’ button.

Brands can create a Snapchat account and advertise for follower opt-in by taking advantage of other social media channels. Because Snaps and stories are temporary, a sense of urgency is created whether it be a promotion, giveaway or breaking news. As consumers’ expectations become increasingly higher and convenience and real-time offers appear at the forefront of their experience, the promise of unique, real-time information offers the incentive to follow a brand.

Brands have been quick to adopt snapchat stories as part of their strategy and big name brands such as Audi, McDonald’s and Taco Bell have already adopted it as part of their marketing.

The app could allow users to receive a snap or a story ad from a merchant, letting customers instantly buy the product. A recent report from Snapchat showed that 58 per cent of college-aged students said they would be likely to purchase a product from a brand that sent them a Snapchat coupon.

Snapchat does pose certain disadvantages though, as consumers will be faced with revealing their bank details. Some may have issues with security concerns as Snapchat has faced privacy and security problems in the past. numero believe there is also the concern of diminished customer contact, risking existing customer relationships.

Snapchat is known for its unique demographic, mostly female users between the ages of 13 and 25. For some consumers, who would never have considered downloading a finance app in the past, it may become their main form of transferring payments. For years, tech companies have promised that, in the future consumers will be buying everything via their smart device. Due to the poor adoption of existing solutions such as Google Wallet, Softcard and more, numero believe there needs to be a massive shift before it is accepted as a mainstream secure payment solution.

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Google Buy Now button coming soon

Google Buy Now button coming soon

Google Buy Now button coming soon

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