Why Snapchat is betting on Snapcash
With Snapchat’s latest funding round having valued the company at $12 billion, our midweek post takes a look at the prospects for Snapcash – the app’s new peer-to-peer payments system in partnership with Square Cash.
While Snapchat has yet to become a global phenomenon, it is currently one of the fastest growing social apps and is used by an impressive 4 in 10 teens in the US (defined here as 16-19s). This puts Snapchat ahead of Facebook Messenger and WhatsApp among this key demographic and it’s these young users that Snapchat is hoping will take to Snapcash.
As our chart shows, mobile banking is already popular among US Snapchatters: nearly 6 in 10 did this last month. Nevertheless, there are hurdles to overcome – especially with the “Snappening” having brought Snapchat’s privacy policies into the spotlight. At present, more than half of the app’s US users are worried about online privacy, while two thirds are concerned about how their personal data is being used by companies. This is likely why a quarter are regularly using anti-tracking software to stop apps or websites gathering data on their activities.
For more detail on Snapchat and its users, see our Snapchat in Numbers Infographic, available at the Insight Store here.