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Snapchat
Snapchat stock was up nearly 5% Monday after the company announced that it's testing a feature that will allow users to search for products on Amazon by using Snapchat's camera.
Why it matters: Snapchat has invested heavily in making its app more than just a tool for selfies. It wants to become a utility for users that can help them search for products, experience augmented reality and, now, shop.
How it works: Users can now open the Snapchat app and point their camera at a physical product or barcode. Once the camera scans and recognizes the item, it will prompt a card with a link for the product or similar ones available on Amazon. Users tap the card and are then redirected to complete their purchase through the Amazon app.
Sound smart: Snapchat is primarily thought of as a social media company, but these investments in its technology will help it become more like a visual search engine.
The big picture: Social media apps are becoming disruptive e-commerce players, mainly because they are able to leverage social data to better understand and cater to users' interests.
- Snapchat began rolling out ads that feature augmented reality in April, giving marketers the ability to let users virtually test their goods before buying them.
Go deeper: The next big e-commerce disrupter