California-based SnapChat is introducing a new feature that will enable users to send money online to their friends.

"SnapCash" is a peer-to-peer payment system that can also be used to pay for services and merchandise. SnapChat posted an educational SnapCash promotional video posted on YouTube that explains how to use the service.

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To allay the fears and encourage of the use of this new service, SnapChat has partnered with Square Cash that will handle the financial details of SnapCash, Techcrunch reported.

The payment process starts with the user sending the money to the bank account of their friend or merchant. A user needs to type his or her debit card number on SnapChat. To send money, you need to go to the chat mode screen, then type the dollar sign followed by the amount you want to send. To complete the transaction, hit the green button.

The SnapCash payment service is initially available to SnapChat users and to debit card holders in the United States 18 years old and above. SnapChat users may have to update or upload an additional app to use this handy feature.

As of the moment, SnapChat has yet to announce an update for Android or iOS powered devices. Currently, this Square Cash powered online payment service will only deal with either MasterCard or Visa debit card.

It's not surprising SnapChat won't handle the sensitive financial details of its users. The company had well known security problems relating to leaks of users' pictures. Partnering with another company that will handle and store financial information is a smart move on SnapChat's part.

Square Cash, on the other hand, is a reputable firm as regards the handling of personal and financial information. Square Cash currently operates a successful online payment service that uses e-mails. The Square payment service is user-friendly and more people will probably trust their financial information with them rather than SnapCash.

SnapChat isn't the first online company to offer this kind of payment feature but hopes its users will adopt this payment service.

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