Many people have heard about Snapchat, a popular social messaging platform which seems to gain a lot of traction among younger users. But at the same time, this company is about so much more than just that. The platform offers financial advice, and lets users send peer-to-peer payments in seconds.
Albeit there is a lot of competition in the social messaging space right now, Snapchat has managed to make a name for itself rather quickly. The company may not have a monetization strategy on the same level as Facebook or Twitter, but that doesn’t make the concept less valuable to investors.
Nailing The Social Messaging Aspect
In fact, Snapchat packs a lot of punch under the hood which most people have not even paid attention to. Granted, they tackle the social messaging aspect in a unique way. Messages are deleted within seconds of being read unless the user explicitly saves the information. This type of approach is far different from other platforms, where information is stored seemingly forever.
Especially younger generations have taken a liking to this concept, as it allows them to share content in an intimate manner. Moreover, the platform destroys any trace of this information being shared automatically. All of the messages are also encrypted, albeit there are some security flaws with this approach. However, It is a overall fun experience to use Snapchat to this end, but there is a lot more to be discovered.
Sending Money Through Snapcash
Not too long ago, Snapchat introduced a new feature called Snapcash. As the name suggests, this feature lets users send money to their contacts in a manner of seconds. Users will have to link their eligible debit cards to the Snapchat platform, but once that step has been completed, they can send funds immediately.
People often compared Snapcash to the way Venmo works, as both tools are intended for paying back friends and family, or splitting bills. Selling content on the Snapchat platform, such as adult pictures or sponsored messages, is prohibited and will result in account termination.
Snapchat – The Pocket-sized Robo-advisor
Perhaps the biggest Snapchat feature very few people seem to be aware of is how the platform will start offering financial advice shortly. Although this feature has not been integrated into the platform yet, the parent company has expressed their desire to become a robo-advisor at some point.
This will be quite a game changer as Snapchat will offer three major functions in one complete package. Users can communicate with others, send money through the app, and obtain financial advice within one and the same ecosystem. Millennials will take an even bigger liking to what Snapchat is all about, and other demographics will start to take notice as well.
Keeping all of this information in mind, it is hardly a surprise to see the company being valued at close to US$18bn right now. Albeit there is no monetization going on in the form of advertisements or anything similar, there is a lot of value associated with the platform. Fintech enthusiasts may want to keep an eye on this company over the next few years, as exciting things appear to be on the horizon.
Header image courtesy of Snapchat