Snap Inc. announced a new bank‑linked age‑verification tool for its Australian users, leveraging the ConnectID platform built by major Australian banks. The tool will allow users to confirm their age through bank software, returning only a yes/no result and preserving privacy while meeting the requirements of the Social Media Minimum Age Act that takes effect on December 10, 2025.
The launch follows Snap’s Q3 2025 earnings, where revenue rose 10% to $1.51 billion, beating analyst estimates, and the net loss narrowed to $104 million. The company highlighted that the Australian law could impact its roughly 440,000 Australian users aged 13‑15, a segment that could be restricted under the new regulation.
Snap’s CEO Evan Spiegel emphasized that the age‑verification solution is privacy‑centric and protects children while preserving user experience. The company also noted its disagreement with being classified as a social‑media platform, arguing that its primary function is visual messaging rather than a full‑fledged social network.
The Australian law imposes fines up to AUD 50 million for non‑compliance and requires platforms to prevent users under 16 from creating accounts. Snap’s partnership with major banks and the use of ConnectID aim to meet these requirements without storing sensitive data, thereby reducing regulatory risk.
Analysts noted that while the age‑verification tool addresses regulatory risk, it may reduce engagement among younger users, potentially affecting Snap’s global MAU growth. However, the company’s Q3 earnings showed strong profitability metrics, with adjusted EBITDA of $182 million and free cash flow of $93 million, indicating resilience in the face of regulatory headwinds.
Snap also announced a partnership with Perplexity AI to integrate conversational search into Snapchat, a move expected to generate new revenue streams in 2026.
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