Thursday, 16 July 2020

Snapchat Will Discontinue Peer-To-Peer Payment Service Snapcash

Snapchat (SNAP) has recently confirmed in an interview with TechCrunch that the application’s peer-to-peer payment services will cease come August 30.

Initially found as code that was buried in Snapchat’s Android application, the removal of the feature, called Snapcash, will serve as the end of Snapchat’s four-year partnership with Square. A Snapchat spokesperson has confirmed that users will be notified about the discontinuation through the distribution of an in-app message.

Further findings within Snapchat’s code suggested that the company is planning to announce a partnership with Amazon, which would require having payment information on-file to purchase items in-app. The rumored visual product search feature appears to be delayed or canceled for the foreseeable future due to the fact that Snapchat has recently removed all suggestions of working alongside Amazon from their code.

It is speculated that Snapcash has been removed due to its lack of legitimacy and usage. Apps like Venmo, PayPal, Square Cash and Zelle often proved to be more trusted or utilized by users, as Snapchat maintains the reputation for being a service that provides the exchange of explicit photos above all else. A Twitter search for “Snapcash” surfaces numerous offers of erotic content in exchange for payment through use of the feature.

Snapcash initially launched when Snapchat was still in its prime. Instagram was still two years away from introducing their Stories feature, which began the immediate and long-lasting decline in Snapchat’s usage. While the feature may have been utilized by many, its presence is difficult to justify now, as the company’s business is at stake.

As the company continues to experience various bouts of layoffs and struggles to hit revenue estimates, the removal of Snapcash appears to be due to public relations risk over its potential for misuse.

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