Snapchat is shelling out millions to young users to create viral content in an effort to compete against TikTok

• Snapchat is shelling out millions to young users to create viral content on its platform, according to The New York Times.
• The move signals the company's plans to more heavily take on TikTok, which remains the most popular platform in the short-form video arena.
• TikTok kicked off a similar program in July with its Creator Fund, a $200 million pool to support company-approved influencers on the platform.

Snapchat is shelling out millions to young users who create popular, viral content on the platform, according to a report from The New York Times' Taylor Lorenz. The move is a sign that Snap is determined to compete more heavily with TikTok in the short-form video arena.

Cam Casey, a TikTok user with over seven million followers, told the publication that he began using Snapchat's TikTok-esque Spotlight feature in November shortly after it launched. Snapchat then approached him offering payment for more videos and, according to the NYT, he has been paid almost $3 million so far to create viral content.

Another user who works as an associate at Lowe's and is of lesser fame than many online influencers garnered half a million dollars from Snap when a video she posted went viral. And a high school senior told the NYT that she has earned over $1 million from Snapchat for her videos, money that can help pay for college.

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Read more: 10 TikTok creators break down how much money they earn from brands

Per the report, there are thousands of Snapchat users raking in payment in exchange for the creation of viral videos.

Snapchat did not immediately respond to Insider's request for comment, but a company spokesperson told the NYT that it is "distributing over $1 million" every day to Snapchat users, many of whom are also famous TikTok personalities. The company told the outlet that Snapchat decides how much to pay each user by considering the video's unique views and other internal metrics.

TikTok has a similar program: Its $200 million Creator Fund launched in July to support influencers approved by the company.

Read more: Snap's head of editorial is leaving the company on the heels of two other major departures from its content team

Video-sharing platforms continue gain in popularity, especially among Gen Z, with TikTok retaining the throne in the short-form video world. As the NYT notes, Snapchat has historically been more of a social-media than content-creation app, until it rolled out its Spotlight feature in late November.

On Wednesday, The Information reported that Snap has promoted Ben Schwerin to Senior Vice President of content and partnerships in a move that is perceived as bolstering the company's plans to take on TikTok moving forward.

In July, Instagram also introduced a TikTok-style feature on its platform - Reels allows users to create and share short-form videos on the app that appear in a dedicated feed.

You can read the full report on The New York Times here.