Snapchat unveiled Snapcash on Monday, a new payments feature that allows users to send and receive money from friends through the app’s private messaging service, CEO Evan Spiegel told Re/code. The new tool is powered by payments company Square, which operates its own similar service called Square Cash that allows people to send and receive money through its Cash app or email.
This new system of money seems rather simple for Snapchat users but this is something entirely new for Snapchat heading down a road theyve never been before.
(recode.net)
As Snapchat’s partner, Square will be responsible for storing all user bank and debit card information, Spiegel says, meaning none of the personal financial information from Snapchat users will reside on Snapchat servers. When a user signs up for Snapcash, they’ll be creating a Square Cash account at the same time and agreeing to Square’s terms of service, according to Square spokesperson.
This can be viewed as a risk for Snapchat users, because you don't know if you can trust Snapchat or Square with your money. Although Snapchat servers will not be in charge of the money aspect they still have had a bad reputation in the past with having pictures leaked, now they are handling your money? You can see my concern with this system.
Snapchat is trying to make this appealing, they have already sent users a video for the launch of Snapcash that may be flashy but doesn't seem very detailed, and does not really elaborate on what their users must agree to in order to use the app.
https://www.youtube.com/watch?v=kBwjxBmMszQ