Snapchat, a photo-based messaging service, has added a payment capability based on Square Cash, Square Inc.'s person-to-person payment system.
The new service, called Snapcash, uses Snapchat as an interface for the Square Cash system.
"After you enter your debit card, it's securely stored by Square, who will swiftly process your payment and send cash directly to your friend's bank account. Just swipe into chat, type the dollar sign, an amount (e.g. $11.25), and hit the green button," Snapchat explains in a Nov. 17 blog post.
The Snapcash service is available only to U.S. residents who have a debit card and are 18 or older.
Square launched Square Cash in October 2013 as an email-based P2P payment system. Since then, the company has evolved Square Cash to be more app-based, allowing users to set profile pictures and track past payments.
By mixing payments with a social messaging service, Snapchat is taking an approach that resembles that of PayPal's Venmo.