Snap said on yesterday, July 22 that it will discontinue its money transfer service Snapcash from the coming August 30.
Snapcash was one of the services the company launched during the growing popularity of its chat service Snapchat, in 2014. But just like Snapchat gets outperformed by Instagram, there have been other online money transfer services chosen over Snapcash, like Venmo and the services of Google, Facebook, Apple, Zelle and more.
Snap, of course, did not officially state any reason for its decision of shutting down the service. It expressed thankfulness in its statement: “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.”
Reasons behind the halt of the growing popularity of Snapcash are majorly its connection with erotic contents and Snap’s low-grade record on security. Some Twitter users even advertised sexually explicit photos in return for Snapcash payments!
As a follow-up to these consequences, it becomes seemingly obvious that people would go for more popular or newer money transfer services, especially when those would be associated with the big brands like Google and Facebook.
Snap will be announcing its next earnings report on August 7. During that time, we hope to get some updates on its doings of the development of Spectacles second-gen in Snapchat for shooting videos outside the app.
Redesigning the Snapchat app and infusing convenient and advanced features will do some good for the company in boosting revenue and user growth. That’s exactly what it is doing right now, and a future release of the Spectacles 2nd-gen and dissolving Snapcash might just be two new steps in the process.
