Bottom line: Snapchat has been looking to grow beyond its core mobile app but Snapcash won't be a part of those plans moving forward. Having credit card details on file is highly attractive for companies so there must have been a good reason for Snap to move away from that.
Snap is shutting down its peer-to-peer money transfer service.
Snap dipped its toes in the e-commerce waters through a partnership with Square in late 2014. Dubbed Snapcash, the feature was billed as a way for friends to easily send and receive money (to cover the cost of splitting a dinner bill or an Uber, for example) but struggled to compete as other companies like Apple, Facebook, Google, PayPal and Venmo introduced or refined similar offerings.
According to TechCrunch, Snapcash also found a following among adult performers as a way for fans to pay for private content over Snapchat. If true, it likely became more of a liability for Snap.
Snap confirmed to the publication that they will be discontinuing Snapcash on August 30. A spokesperson for Snap noted that it was the first product created in partnership with another company, adding that they are thankful for all the people who used it over the past four years and for Square’s partnership.
Square also confirmed the partnership is coming to an end next month.
Snap’s next earnings report is due on August 7.
Lead mock-up via Mashable