Snapchat is Shutting Down Money Transfer Service, Snapcash

By Paige Burke — Published July 23, 2018

Snapchat is Shutting Down Money Transfer Service, Snapcash

Snap will be apparently discontinuing their money transfer service on August 30th according to uncovered code within the Android app. Although you may be familiar with Snapchat without remembering the release of Snapcash, it was an addition to the app's functions when it was at its most popular in November 2014. Since then, the service has been available to Snapchat users over the age of 18 with a credit or debit card.

Before the introduction of Instagram Stories, Snapchat's sole function was to allow people to interact with disappearing stories and Venmo was one of the few apps on the market that offered money-sending services. Today, social media platforms are in a constant battle to be the best and Snapchat are struggling. Whilst Instagram has a strong user base Snapchat, in comparison, do not. What's more, companies such as Google, Facebook and Apple are beginning to offer money-transferring services which are making it hard for Snapchat to stay afloat.

Snap has confirmed the closing of Snapcash with a 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."

Snapchat have not yet released a statement reflecting reasons that they are removing Snapcash services however it is clear that it was becoming more of a liability than a convenience. In more recent years, there has been an increase in illegitimate activity on the app with people paying for explicit images as opposed to paying bills. In addition, Snapchat has been in the limelight previously for security issues which have caused users to be less trusting with personal information.

Meanwhile, the Snap has been trying to increase their user platform by redesign the app with tweaks that will allow users to enjoy videos outside of the Snapchat app. We will see if these efforts are fruitful with the company announces its earnings report on August 7th.

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