Snapchat is shutting down Snapcash, its peer-to-peer money transfer service, on August 30th. The company launched its own money transfer service in 2014, at the height of its app’s popularity.
Snapcash was launched even before Instagram started to steal Snapchat’s users by introducing the disappearing stories format. Back then, only few apps were having the money transfer feature for its users and Venmo was one of those.
Snapchat said that Snapcash was their first product created in partnership with another company. The money transfer feature was created in partnership with Square and with the shut down of the product, it will also be end of four-year long partnership between the two companies.
Confirming to TechCrunch, Snapchat added, “Yes, we’re discontinuing the Snapcash feature as of August 30, 2018.”
However, Snapchat didn’t specify the exact reason as to why they have decided to shut down Snapcash. Snapchat is expected to reveal the reason when they will be posting about the discontinuation of their payment service on their support site, to notify the app’s users.
Also, it has been noticed that few people are engaged in using Snapcash to exchange erotic content on the app. The company doesn’t want the app and the money transfer feature to be used for sexting or related stuff, as it is bad for the app’s reputation and this might also be the reason for the discontinuation of Snapcash.
Further, Snapchat’s track record hasn’t exactly been enticing for users to trust it with their personal information. So, as to stay relevant in the market, company would do anything to avoid another scandal.
Snapchat is already struggling to grow its user base against Instagram. The company revamped the app later last year, in a way to grow its user base and boost revenue. It will be interesting to see that how the company’s efforts have pay them, when it releases next earnings report on August 7.