They want to add payments to their messenger app. That's a known business model and a hot area right now - WeChat pioneered it, Line does it too, and Facebook is working on a cryptocurrency-based solution that does the same thing.
The rewards could be huge if payments via messaging apps takes off in the west. It's really too bad WhatsApp sold to Facebook of all places.
We could have a privacy-oriented chat platform with a cryptocurrency "small cash" type of transaction system built on top. Combined with some informal craigslist style mini-stores, which flourished in China via Wechat.
I'm sure FB/WhatsApp could do it via normal payment channels, probably involving Visa/Mastercard. But the privacy story is awful for such a critical piece of software. Assuming they could pull it off. Maybe Kik could take up the privacy flag?
Don't know enough about crypto, but whats the benefit of a payment system for messenger apps to run on crypto at all? If you're transacting through a centralized messaging platform doesnt that defeat the purpose of a decentralized currency or ledger?
Also saves you from the "How do I know you won't run off with the money?" and "What happens if Kik goes out of business?" questions. The value of a blockchain is that your digital tokens exist independently of the sponsoring organization, so the sponsoring organization cannot just alter or shutdown their database to make your funds go poof.
Granted, if Kik went bust tomorrow those tokens would most likely have no value, since their use is tied to Kik's messenger app. But in theory you would still own the tokens and could transfer them to anyone who would accept them.
That's only true in the case where the underlying cyptocurrency is actually accepted outside the platform. In theory, if your app is transacting money, it keeps the equivalent cash in an insured bank account which is exactly how PayPal and similar work. If it's not widely accepted, it's basically the same as in-game tokens/currency. Speaking of in-game tokens, people have used them for the same purpose of cryptocurrency e.g. capital flight and money laundering.
Theoretically this could be possible now with existing cryotos by making small wallets for micro transactions. The chat app would just need to link your blockchain address to make it easily copy and paste-able
