Snapchat Scraps Snapcash Payment Service

Snapchat Scraps Snapcash Payment Service
The peer-to-peer payment service will close down on August 30, the company says.

(CCM) — Snapchat has made the decision to abandon its Snapcash peer-to-peer payment service, less than four years after it was launched in partnership with Square. It will be closed down on August 30, according to a Techcrunch report.

Code discovered in the Android Snapchat app contains a "Snapchat deprecation message" which reads "Snapcash will no long be available after %s [date]", and the company has confirmed that August 30 will be the last day of service, according to the report. Users will be informed about the shutdown in the app and also on Snapchat's support site, the company added.

Snapcash faced competition from the likes of Venmo, PayPal, Zelle, and Square Cash as a quick and easy way to send small amounts of money to friends to repay them for expenses incurred on nights out, so the service may never have gained a significant following or generated substantial income.

The company will now have to explore new ways to make money from the almost 200 million daily active users of the loss-making Snapchat service. One possibility is the launch of a rumored "camera search" feature which will be able to identify objects and barcodes, and then send Snapchat users to retail partners to purchase those items in return for an affiliate fee.

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