The days of Snapchat's peer-to-peer payment service Snapcash
Snapchat will officially end its mobile payment service on August 30, according to the buried code within the Android app uncovered by TechCrunch.
Snapchat was introduced four years ago. In November 2014, Snapchat announced a partnership with mobile payment service provider, Square, to introduce the feature that allows you to transfer money between accounts on the content-sharing platform.
The feature became available to Snapchat users with Android and iOS in the US who have a debit card and are 18 or older.
Snapchat confirmed the final date of the platform in a statement to TechCrunch, saying that users would soon be notified via the app.
"Snapcash was our first product to partner with Another Company – Square, and we are grateful for all the Snapchatters that have used Snapcash over the past four years and for Square's partnership!" A spokesman said the publisher.
Snapchat has not revealed exactly why it chose to take Snapcash – especially since the platform has recently taken big steps towards in-app purchases.
Mashable has contacted Snap to write a comment.
One possibility is a crowded peer-to-peer payment market and the introduction of other platforms such as Google Assistant, Google Assistant's own pay-linked service, a PayPal-owned payment application, Venmo, Apple's own iMessage feature, Apple Pay Cash, Facebook's TransferWise-powered messenger bot and the in-app platform cell, which is favored by Bank of America, Chase and CitiBank.
TechCrunch also pointed out that Snapcash started out as an easy way to send money to your friends and was promoted as the 'erotic content' payment tool by Twitter users. Whether this has contributed to the decommissioning of the service remains to be seen, but it is not a good view for the platform.
Whatever the reason, it's an interesting time for Snap to end its four-year partnership with Square. The company will announce its next earnings report on Aug. 7 in just a few weeks.
Snap Inc. reported disappointing revenues in its 2018 Q1 earnings report, reporting quarterly revenue of $ 231 million. According to a Thomson Reuters consensus estimate, the expectation was $ 244.5 million. This follows a loss of nearly $ 350 million in the fourth quarter of 2017.
Additional coverage by Jason Abbruzzese and Rachel Kraus