Snap has made it known that on August 30th, it will be shutting down its peer-to-peer payment service Snapcash.
Snapcash, which launched in 2014 at the height of the social media app’s popularity, was ahead of its time in offering users a way to connect payment methods to Snapchat.
With apps like Venmo, PayPal and Zelle, there are now plenty of other ways to transfer money to contacts.
Though Snap didn’t specify why it was shutting down the payment service, it’s not hard to see that with the likes of Venmo, not to mention Apple Pay and Google Pay, Snapchat will have a harder time competing in the same space; especially when it’s in the process of cost-cutting and trying to hit missed revenue estimates.
Additionally, the payment service is known to have become a method of paying for sexually explicit content over Snapchat though that was never the intention of the app.
A Snapchat spokesperson confirmed the shutdown saying, “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!”
The spokesperson noted that users would be notified in-app and through the support site soon.