Snapchat recently applied for trademarks for payment systems, according to TechCrunch, but plans are unclear about how it intends to use them. If they enable mobile payments, will it “mean that sending one of your friends a fistful of digital cash will give them a ten-second window in which to claim it before it goes away?” asked PC Magazine.
The article states that the first trademark’s description is for software to process electronic payments to and from individuals, which can be downloaded from a global network. The second is for electronic transfer of money “providing electronic processing funds transfer, ACH, credit card, electronic check and electronic, mobile and online payments.”
The trademarks will ensure other companies can’t use Snapchat’s name for payment services, but the company may not be currently planning out a payments strategy. The trademarks may just be placeholders. However, Snapchat co-founder and CEO Evan Spiegel told TechCrunch last year that “in-app transactions will come first. We think we can build really cool stuff people want to pay for.” He added that the app “is now a part of everyone’s day-to-day lives.”
Mobile payments may be the way for Snapchat to further monetize from its social connections, said PC Mag, as it could take a percentage of each transfer or purchase. Consumers perhaps won’t mind seeing “flash notifications of sales on products” they are interested in.
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