zWere you one of those people who were using Snapchat’s Snapcash?
Well, if your answer is either a “Yes” or a “No” (unfamiliar with the term), the news remains the same – Snap Inc. the parent company of Snapchat has made the announcement of Snapcash’s shut down.
More details on the shut down of Snapcash –
For those who have no clue what we’re talking about, then here’s a brief introduction –
Snapcash was a digital peer-to-peer payment service that was announced way back in 2014. It was introduced at the peak of Snapchat’s user base and popularity.
This service has been available to all Android as well as iOS users in the US. (Only if the users are 18+ and have a debit card.)
It was basically a means by which the users could connect various payment methods through the app. The users could pay back their friends for drinks or even for Uber. But this won’t be the case from now, because this payment service is going to be shut down officially on the 30th of August.
The news was first announced by TechCrunch on the 22nd of July. Much like the previous information about the new feature – “Eagle”, the source for this news is none other than TechCrunch’s most relied tipster – Ishan Agarwal.
The figure shows a snippet of a code that was sent by Ishan to TechCrunch. The code buried in Snapchat’s Android app includes a “Snapcash deprecation message” that displays “Snapcash will no longer be available after %s [date]”.
This shut down will end Snapchat’s four-year-long partnership with Square. A spokesperson of Snapchat says the following which clarifies the news –
“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!”
He also mentioned that the users would be notified in-app and through the support site soon.
More Insight –
What is the reason behind this shut down?
There was no official word on the exact reason behind the decision of Snapcash’s shut down. But according to stats and TechCrunch, few unofficial reasons could be given –
- Snapchat along with Snapcash is struggling with its growth in the market. Especially, due to the companies like Apple, Facebook, PayPal, Apple Pay, Venmo, Google, etc. all of which have begun their own services for money transfer.
- The payment service never actually took off as Venmo continued to grow while Google and Apple began adding a similar feature to their respective mobile OS.
- Snap could have had serious legal or PR problems since people ended up using Snapcash to sell erotic content online.
- There wasn’t a payment cancellation option provided in the app.
Hence, much like we said in earlier posts, Snapchat is keen on improving its design and other features. With the Eagle feature not being visible in the code anymore, one could only speculate Snapchat’s future plans.