Snapchat ends up Snapcash, the easiest way to send money to your friends or family. The company launched a peer-to-peer payment service 4 years back and now it’s putting it off by August 30. It made a partnership deal with Square to promote and provide this service.
A Snapchat spokesperson said, “We are very thankful and grateful to the people who used Snapcash feature to transfer money. Moreover, we place a great round of applause for Square who patiently co-operated with us for last 4 years.”
To access Snapcash, users need to give card verification value (CVV), expiration date, and a regular number of their debit card to send, receive the payment, or do online shopping through Snapchat without leaving the app. The only drawback of the feature was it prohibited termination of payments once the processing of the purchase was initiated or completed.
Long back in 2014 Snapchat along with Square handled the actual payment process, which was purely user-based. However, there were certain people who offered adult contents and videos in exchange for the payments. It caused serious PR and legal issues. This might be one of the strongest reasons why Snapchat declared to end-off the service.
The feature was available for all the iOS and Android users in the US having a debit card and having age 18 or above. The users will soon be notified through the app notification. A spokesperson from the company said, “Snapcash was the first software product created by Snapchat in partnership with the Square and we are very glad we had millions of customers from last four years.”
There are several other peer-to-peer payment applications such as PayPal owned Venmo, Google Pay-linked service, Apple Pay Cash and Messenger Bot that has made payment transfer easier. SnapChat experienced a drastic drop down in its revenue in the first quarter of 2018. It was around $231 million while the company expected revenue of $244.5 million. The revenue went up to $350 million in the first quarter of 2017, which was really too huge expectation this year.