Snap is shutting down Snapcash, its payment service, on August 30th
If you don’t remember Snapcash, don’t worry — on August 30th, Snap will discontinue its peer-to-peer money transfer service that launched at the height of the messaging app’s popularity.
Snapcash was announced back in 2014 when Instagram has yet to steal Snap’s users with the disappearing stories format, and Venmo was one of few apps you can use to send money to friends. Today, Snapchat is struggling to grow its user base against Instagram, and companies like Google, Facebook, Apple, and Zelle have begun offering their own services for transferring money to contacts. In a statement to Techcrunch, Snap confirmed Snapcash’s shutdown. “Snapcash was our first product created in partnership with another company – Square. We’re thankful for all the Snapchatters who used Snapcash for the last four years and for Square’s partnership.”
Though Snap didn’t specify why it’s shutting down Snapcash, it’s likely that the service never quite took off as Venmo continued to grow while Google and Apple began adding a similar feature to their respective mobile OS. Techcrunch’s report also notes that Snapcash seems to be associated with some erotic content online, with some Twitter users advertising sexually explicit photos in exchange for Snapcash payments. Additionally, Snap’s track record for security hasn’t exactly been enticing for users to trust it with personal information.
The company has been busy trying to boost revenue and user growth by adding a redesign that makes the app more web-friendly and a releasing second generation Spectacles that shoots videos compatible for viewing outside Snapchat. The hope, Snap says, is to grow beyond the core mobile app — and we’ll see just how well those efforts amount to when the company announces its next earnings report on August 7th.