Snapchat's very own peer to peer payment and money transfer app will permanently close with effect from August 30th, 2018. The feature's closure will bring an end to Snap's four-year-long tie-up with Square. Both the companies were responsible for running the feature.
Snap began its money transfer facility: Snapcash, as a part of Snapchat. Snapchat started this digital payment platform as a way to send money to friends and dear ones. Although, Venmo, Zelle, and PayPal were the leaders of money transferring apps at that time.
Possible Reasons for the permanent shut down of Snapcash:
Recently, Snapcash was struggling to make its way in the market as tech giants like Apple, Google, Samsung have already started winning the hearts of their users with their very own indigenous payment apps. Therefore, Snap was losing the battle against its major competitors.
Another reason for this closure was the wide-spreading of erotic contents over Snapchat in exchange for cash payments through Snapcash. The platform was turning into an open playground for the adult performers who used to demand money from users for exposing private contents over Snapchat, in an absolutely illegitimate way. Lack of security was also an intriguing issue for Snapcash. The payment platform has had no real-time security options available for users' safety.
How Snapcash will discontinue:
Finally, as an ending note to Snapcash, Snap authority quoted: "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."
Techcrunch further noted that the users of Snapchat may soon receive a "Snapcash deprecation message" which reads "Snapcash will no longer be available..."
Future Replacement of Snapcash:
Whether Snap will bring any other alternative option to Snapcash or not is still a question to be answered. However, a group of tech analysts added that Snapchat may not attempt anything to revive its digital payment platform as if it was attempting to do so it would have brought an update to the app as well.
Snap officials added that the company is planning to get ahead in technology, beyond its mobile app. The company is looking forward to releasing its next earnings report in the second week of August, this year.
