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Privacy and confidentiality are amongst the most sensitive subjects of modern times. Every day you get news about some security violation or breach due to application flaws. Nothing is safe - even seemingly all-around private and secure messengers.

Messages are being leaked daily and accounts hijacked due to improper database maintenance like storing user passwords in plaintext almost in plain sight. It is disturbing and not particularly endearing.

This kind of environment caused the growing demand for secure private messengers like Signal Chat App and the likes, which treat users and their data with respect.

In this article, we will talk about secure messengers, why they matter, and also discuss the ways they generate revenue.

What are secure messenger apps like Signal and Wire?

Secure private messenger is a messaging application that emphasizes the privacy and confidentiality of users using encryption and service transparency.

While every modern messenger system is using different security practices (most prominently SSL/HTTPS) - the difference between secure and classic messengers is what we don’t know in the scope of implementation and approach to user data.

Secure messengers evolved into a distinct category due to the growing awareness that communication over the internet is accessible by third parties, and reasonable concerns that the messages can be used against the users.

People are using messaging to share personal information, photos, and other files. Why should this information be accessible to anyone else?

Messengers are also used to report on sensitive political and social issues, especially in countries where governments monitor the internet. Another contributing issue is the lack of regulation over what is going on in private-owned platforms like Facebook or Google. It is a well-known fact that big tech is using user data, including personal messages, to adjust advertisement targeting.

How do secure messengers like Signal work?

The core principle behind secure messaging is end-to-end encryption.

For example, how does Signal work?

Signal App is using its own encryption method entitled Whisper Protocol. It is also used in WhatsApp, which makes it more secure than Facebook Messenger.

This type of encryption uses a multi-layered approach that makes it nearly impossible to brute force your way into the data. This feature makes the Signal app secure.

Here’s how end-to-end encryption works:

Two users start a conversation. This event creates two sets of keys.

The private key that remains on the user’s device.
The public key is stored on the service provider’s server.

When user A writes to user B - the public key is retrieved and used to encrypt the message so that it would be available only through the private key. The message is then sent to the user via server and decrypted with the private key.

As you can see - it is simple.

The data stored on the server is no use in its encrypted form - it is just some letters and numbers beyond comprehension. No one can read it without the private key. It is so complex, brute force methods of deciphering are no good for it - it's too hard to match a key with long strings of various randomly generated characters (there are way too many possible combinations).

Unless the intruder can find a way of retrieving the private key from the user’s device (it is possible, sim swap and losing a phone helps) - the intercepted data is as good as the cat’s full body typing documents.

Secure messenger value proposition

Now let’s look at some of the major secure messaging apps and their business revenue models.

First, let's nail down the basics.

The value proposition of the encrypted messaging app is built upon four basic principles:

End-to-end Encryption (aka E2EE);
Message deletion;
Limited use of Metadata
Transparency of service and product.

Let’s look at them one by one.

Encryption is the most prominent selling point of the encrypted messaging app. It is used to guarantee user privacy and data security by scrambling messages and making them unreadable without the encryption keys.
Message deletion is another critical piece of the puzzle. While message deletion is one of the basic features of every messenger, secure or not, there is a caveat. It is usually just a prop. Users can delete messages on their device, but not from the other user’s conversation or server log. These messages may remain on the service provider’s servers. Facebook is doing it all the time; Google does it, Yahoo probably remembers what you did in your past life. So, actually giving users the power to erase their messages completely is an excellent step towards building a trustworthy relationship with the user. For example, Signal has a timeout option that automatically deletes messages after a certain period upon the message being read.
Metadata is one of the most problematic elements of user privacy. It is used to identify users and their credentials. Most messaging apps store message metadata by default. It includes such data as time, sender, receiver, contact list, device ID, and so on. This information can be used by hackers to identify the user and apply social engineering skills to retrieve the decryption key. The most prominent example of storing metadata on servers is WhatsApp. While it applies E2EE to messages, it also saves some aspects of message metadata, which is reason to be concerned. On the other hand, Signal stores only the last connection data for log-in and nothing else. The rule of thumb is - the less metadata secure messenger uses, the more secure your data is.
Transparency for secure messengers is twofold. First, you have terms of service which directly state the intention of providing a safe and confidential communication platform. But talk is cheap, and if you talk the talk, you need to walk the walk. That’s where the second aspect of transparency kicks in. The real sign of clarity is when your secure messaging app has open-source code so that anyone can look inside and check whether it is safe enough with no backdoors, that is the real indication that there is nothing to hide. On the other hand, it is also the right way of improving the quality of an application by the crowd effort as any expert can contribute to the polish of the product.

These are the foundation blocks of the product upon which the monetization model is built. Now let’s look at how different secure messaging platforms operate and generate revenue.

How do secure messengers make money?

In this section, we will look at the business revenue models of several favorite secure messaging apps:

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How App Developers Earn Money