The new Cartoon Lens is now available for both Android and iOS users worldwide.
Snapchat will give away $1 million every day to creators who make these videos on the platform.
Snapchat's new filters went viral when it introduced a lens that let users switch their gender in photos.
Snapchat also adds a "Highlight" feature for select users so that the posted video and images can stay on their page for a longer time.
Ephemeral messaging app Snapchat by year's end will have more US users than either Twitter or Pinterest, a market tracker said Wednesday.
One of the fastest growing social platforms, Snapchat, now has users watch 10 billion videos per day, up from 8 billion in February this year.