TECH

Snapchat Will Let You Replay Messages For 99 Cents

The company needs cash, and this is one way to get it.

Snapchat just figured out a new way to make money.

The ephemeral messaging service announced a new feature Tuesday that lets users pay 99 cents to replay three snaps once before they disappear.

The company already allowed users to replay one message once per day for free.

"But then we realized — a Replay is like a compliment! So why stop at just one?" Snapchat wrote in a blog post. "You can use a Replay on any Snap you receive, but you can only Replay any Snap once. They’re a little pricey — but time is money!"

And Snapchat needs money.

The company, valued at an eye-popping $20 billion, generated just $3.1 million last year, according to 2014 financial documents leaked to Gawker last month. Such revenue stands in stark contrast to the gushing news coverage lavished on Snapchat for its potential profitability.

Until now, Snapchat has made money off advertisements. The company has leveraged its popularity among teens and millennials -- marketers' most coveted demographics -- to charge high ad rates. Snapchat lowered its prices earlier this year to 2 cents per view on ads on the app's Discover tab, where media companies host stories tailored to the platform.