Snapchat files trademarks for handling payments on app


Snapchat is currently in a bubble, a lot of investors see the potential in the application, but the current state of Snapchat’s finances mans they need to rely on funding from investors, to keep the startup growing.

This week, Snapchat’s law firm Cooley added two new trademarks, for handling payments on Snapchat. This is the first we have heard of payments on the mobile app and it looks like the first move to a sustainable revenue source.

The trademarks filed would allow Snapchat to implement a payment service, allowing users to pay for things inside the app. This could be real-life products or apps/media available on the virtual store.

Snapchat will take a very small cut of every transaction, in return the merchant will have access to Snapchat’s large teenager userbase. Music albums and apps could be targeted quite well on the service, even with user information.

Currently, Snapchat has no real way to pay the bill, other than investment. The small amount of revenue Snapchat currently makes is not sufficient for the large startup, currently valued at around $4 billion.

This could be the game changer for Snapchat, snap sales could be sent to users, like an hourly sale on a popular application or a new band’s exclusive first peak on Snapchat.

All of this could be useful in making Snapchat revenue, but in order for it to not feel like Snapchat is going corporate, they need to work on making sure the user’s understand what they are doing and the advantages.

Xiaomi, one of the most popular smartphone brands in China, uses a similar tactic on Sina Weibo, a popular microblogging service. The phone will appear for users to pre-order on the website, instead of shifting them to another webpage.

This sort of seamless transaction could mean a lot for Snapchat, making sure the user buys the product on their app and not through a referral link. We expect to hear more in the coming months.

Via: TechCrunch