The economics of this are fascinating. Square loses money on every Square cash transaction, at least 22 cents to be exact.[1]
The potential justification for that is to promote the Square brand, get cards registered, and maybe hopefully drive usage of other (future) premium products/features that generate actual revenue. So, basically a marketing expense.
Here they're wrapping it in another company's app and brand, Snapchat.
Which still gets cards registered but, presumably, Snapcash users are gonna typically come back through Snapchat to do more transactions, letting Snapchat tax any future premium revenue.
Really weird and.. shall I say it.. bubbly..(shhhhhhhhhh!!!)
The potential justification for that is to promote the Square brand, get cards registered, and maybe hopefully drive usage of other (future) premium products/features that generate actual revenue. So, basically a marketing expense.
Here they're wrapping it in another company's app and brand, Snapchat.
Which still gets cards registered but, presumably, Snapcash users are gonna typically come back through Snapchat to do more transactions, letting Snapchat tax any future premium revenue.
Really weird and.. shall I say it.. bubbly..(shhhhhhhhhh!!!)
[1] Visa debit interchange is $0.21 + 0.05% http://usa.visa.com/download/merchants/visa-usa-interchange-...