Snapchat users will no longer be able to use Snapcash. The company will discontinue its peer-to-peer money transfer service on August 30.
In 2014, Snap launched Snapcash as a partnership with Square. The partnership was a win-win situation for both the companies. Square’s service got attached to a very popular name while Snap got a payment platform with very little effort. However, it’s no surprise that the service is going to be discontinued. Considering other payment options, such as Apple Pay Cash and Google Pay, Snapcash is just an ordinary option.
A Snapchat spokesperson confirmed TechCrunch about the discontinuation-
Yes, we’re discontinuing the Snapcash feature as of August 30, 2018. 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!
It’s not sure what will happen to users’ accounts, but the spokesperson assured that they will be notified through both in-app and the support website.
Snapcash was a massive liability for Snapchat. A quick Twitter search reveals tons of adult performers using Snapcash to take payments for erotic content and more… https://t.co/kgbWkAd6RY pic.twitter.com/4upGEAs7Zj
— Josh Constine (@JoshConstine) July 22, 2018
Although started as an easy way to send money, Snapcash has been used as a means for payment for “erotic content” advertised by some Twitter users, TechCrunch reports. It might not be a reason behind the shutdown of the service, but it’s definitely not good for the company’s image. Snap has already been working hard to boost user growth and revenue by adding a redesign to the Snapchat app and launching second generation spectacles. We will see how the efforts go when the company will announce its next earnings report on August 7.