TORONTO – SnapChat became famous for its disappearing photo and video messages, but the social media company is now trying its hand at mobile payments with a new app.
Dubbed “SnapCash,” the service allows SnapChat users to send their friends money through a message by simply typing in the dollar amount.
SnapChat partnered with Square, the tech company that created a credit card reader for smartphones, to create SnapCash. The service is based on Square’s service that allows users to send each other money by putting a dollar amount in the subject line of an email.
To use SnapCash, users must first enter their banking information into the app, which is stored on Square’s servers.
SnapChat was quick to address security concerns surrounding the service in a blog post Tuesday, stating users’ banking information is stored securely.
“We set out to make payments faster and more fun, but we also know that security is essential when you’re dealing with money. Square has a ton of experience in this area and our teams have been hard at work to make SnapCash a great experience for everyone,” read the blog post.
But SnapChat has come under fire for its privacy practices before.
In May, the social networking company settled a dispute with the U.S. Federal Trade Commission over allegations that it misled users over its data collection practices.
READ MORE: Snapchat promises to make app more secure
SnapChat also fell victim to a wide spread security breach in January, that resulted in hackers posting the usernames and phone numbers of at least 4.6 million accounts. The breach occurred after security experts warned the company at least twice about a vulnerability in its system.
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