Snapchat Is Becoming Snapcash?

Social Media is now encroaching on the ecommerce industry.  On Monday, Snapchat sent a jazzy video to their subscribed users about the new Snapcash feature.  The quick picture app is now pairing up with Square Cash for a payment to payment option on the Snapchat app.  Simply, users 18 and older can add their Visa or Mastercard to Snapchat and pay their friends from the app.  Snapchat will keep their debit cards on file.  But if your friend does not accept your money offer within 24 hours, your money will be refunded back into your account.

This seems all good in theory, but does social media really need to start becoming a bank station as well?  I truly think social media and personal finances should be kept separate.  When I think of transferring money, I don't go to "I need to send a selfie along with this $20."  Snapchat might be crossing the line on this endeavor.  And does anyone not remember Snapchats hack last year, where over 4 million accounts and their information were available for anyone?  Imagine that with debit card information. I only want my debit card linked with my banking app, because that is the only app I feel is secure enough for that information.  Snapchat has had some security issues, so that could be a major setback for them.

For me, social media is about connecting with others, but not through money transfers.  Let the mobile payment apps be mobile payments, and let me focus on my Snapchat selfies on Snapchat.

Spotify's Better Without Taylor Swift

In the past week, Taylor Swift pulled her newest album, 1989, off of Spotify's streaming service.  And then everyone freaked out.  Swift's explanation was that,

"Everything new, like Spotify, all feels to me a bit like a grand experiment.  And I'm not willing to contribute my life's work to an experiment that I don't feel fairly compensates the writers, producers, artists, and creators of this music.  And I just don't agree with perpetuating the perception that music has no value and should be free..."

Taylor Swift's net worth is estimated to be around $200 million.  I don't know what she is complaining about.

With Swift taking her album off of Spotify, the entire music and social community is now expressing their sentiments.  The Black Keys and Radiohead have previously complained about Spotify's royalties payments, but now Bono is speaking up for Spotify.  One of the most recognizable frontmen is backing up Spotify, saying "Let's experiment.  Let's see what works."  Bono recognizes that artists should get paid more, but "the greatest way you serve your songs is to get them heard."

Via Spotify's website

Spotify is a great platform for users to find new artists or listen to new albums and decide how much you love them.  I have the free service of Spotify, but I use it not only to listen to the playlists I've created, I test out what songs I like, then go over to iTunes and buy them.  Over the past two months, I have bought at least a dozen songs legally, meaning the artists get paid, and it was all thanks to Spotify.

CEO Daniel Ek says they created Spotify on the basis that "We love music and piracy was killing it."  Spotify pays about 70% of their revenue to rights holders.  They even have a formula for royalties, so if your music is played more on Spotify, you get a bigger check.  Since its creation in 2008, Spotify has paid over $2 billion in royalties, $1 billion alone in 2013.  Artists are getting paid, and if listeners become fans, they will most likely go buy your album legally on iTunes, so you get paid twice.

Artists need to realize that Spotify is creating a community.  People can follow artists and see what playlists they make, and invite others to listen to music, hear artists' commentary on their albums and more.  It's more than trying to "not" pay artists, Spotify is a platform that is trying to make people fans of music (legally) again.  Without Spotify, many listeners (probably even me) would not listen to new music and not pay for anything.  Artists should want to be a part of this community, and Taylor Swift is shooting herself in the foot for not wanting to be a part of her fans' music experience.  Spotify, you keep doing you, and the artists will realize how important you are.