For those who no longer recall Snapcash, there is no need for you to fret because beginning on the 30th of August, Snap will put to a stop, its peer-to-peer transfer of money service that launched at the peak of the popularity of the messaging app.
Snapcash was announced in the year 2014 when Instagram had not yet taken over the user base of Snapchat with the disappearing stories format, and Venmo happened to be one of the few apps users could use to send money to friends. In these times, Snapchat is looking to increase its users and get them to be more than those of Instagram and companies like Google, Facebook, Zelle, and Apple have started to offer their own services of money transfer to between users. Snap affirmed to our sources about the shutdown of Snapcash in the words, “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.”
Although the company did not explicitly state why it was shutting down the Snapcash service, it seems that the reason is because the service didn’t take off as Venmo continued to grow and Google and Apple started adding a like feature to their mobile operating systems. Reports from our sources also tell us that Snapcash appeared to be associated with erotic content online and Twitter users were advertising sexually explicit photos in exchange for Snapcash payments. In addition, the track record of Snap for security has not exactly been interesting to users for them to be trusted with personal information.
The company has for a long time been working hard to boost its revenue and the growth of its user base by redesigning the app in such a way that is more web-friendly and also releasing a second generation of Spectacles which is capable of shooting videos that are compatible for viewing outside the Snapchat platform. According to Snap, their hope is to grow beyond the core mobile app. It is only from the announcement of its next earnings that we can gain full detail on the performance of the efforts that have so far been put by the company to achieve their goal.