Snapchat, known as the new teen app, where people can send photos and short video to a friend or group of friends, only to have it deleted a few seconds later and eradicated from existence, is looking for new areas to explore.
One of these might be payments, according to two new trademarks spotted by TechCrunch. The two trademarks involve Snapchat being able to handle credit cards and payments inside the application.
Filed by Cooley, the law firm for Snapchat:
- “Computer application software for processing electronic payments to and from others that may be downloaded from a global computer network”
- “Electronic transfer of money for others; providing electronic processing of electronic funds transfer, ACH, credit card, debit card, electronic check and electronic, mobile and online payments”
These both feel like big moves by Snapchat into the payments industry. Given the high percentage of teens on Snapchat, flash sales and targeted advertisements might be insanely popular.
In China, Xiaomi, one of the most popular smartphone manufacturers, gained popularity by launching pre-orders on social networks, drawing in a younger audience to pre-order the smartphone.
Snapchat could be looking for the same thing, by adding payment information, people can quickly buy products from brands they are interested in, who may offer deep sales for an hour, to customers on Snapchat.
This could open the market up to new advertising, application developers could target sales and have the user buy and download, right on the Snapchat application. This would be an excellent way to strike quickly at customers.
Snapchat would obviously get a little splash of coins every time someone buys a product from an ad. Currently, Snapchat has no revenue source, and this move is different from what we anticipated of the startup.
Brand awareness could be critical on Snapchat to make it profitable, but the startup walks the fine line of cool and business, something Facebook and Twitter know all too well.