Tragedy has recently struck one particular company in the social media world. Confirmed by TechCrunch, Snapchat is ending its money transfer service, Snapcash, on August 30, 2018.
So what does this mean for Snapchat users? Well, it didn’t say what’d happen to users’ accounts, but it did promise that they’d be notified.
This may devastate those frequent Snapcash users, but this was bound to happen eventually with all the competition that Snapcash faces.
Snapchat Couldn’t Keep Up With The Competitors
Snapchat officially launched Snapcash in 2014 as a partnership with Square, another money transfer service.
This partnership gave both entities a boost: For Snapcash, they got a payment platform with little-to-no work. For Square, they were able to attach their service to a very familiar brand.
Snapcash provided Snapchat users with an easy way to send money, but it failed to attract interest outside of paying for adult content.
Now this most likely isn’t the main reason for the ending of Snapcash, but it’s definitely not good for the company’s image.
Now the real reason Snapcash is ending has not yet been revealed, but there’s a good chance it’s due to their inability to fight off the competition.
One of the competitors that Snapcash wasn’t able to compete with is Venmo.
Venmo has really been the go-to apps when it comes to paying your friends.
Unfortunately, however, Venmo isn’t Snapcash’s only competitor.
They’re also going up against competition from the likes of Facebook, Zelle and even Apple Pay Cash and Google Pay.
That said, no matter how well Snapcash worked, it was just one platform that couldn’t continue swimming above the surface.
What’s Next For Snapchat?!
According to TechCrunch, earlier this month, they revealed that Snapchat’s code mentioned a camera search feature codenamed “eagle.”
It’s designed to allow users to scan an object or barcode using their Snapchat camera and see product results in Amazon.
But since the report, mentions of Amazon have disappeared from the code.
It’s unclear what will happen in the future, but camera search could give Snapchat new utility and monetization options.
So it’ll be interesting to see how Snapchat executes its commerce strategy now that it’s discontinuing Snapcash.
Only time will tell!