Photo messaging app Snapchat is terminating its digital peer-to-peer payment service “Snapcash” on August 30. Snapchat is ending its four-year partnership with US-based mobile payment company Square. A Snapchat spokesperson confirmed:
“Yes, we’re discontinuing the Snapcash feature as of August 30, 2018. 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 introduced Snapcash – a way to get users to connect payment methods to the app. Because the company’s aim is to become a commerce platform. Having payment info on file is what makes buying things through Snapchat easier than the web and draws brands to use Snapchat storefronts.
Snapchat has not revealed the reason behind shutting down Snapcash yet. The purpose of the feature was purely for user-convenience though it was exploited by users who offered adult content in the exchange for payments through Snapcash. This misuse could have caused Snapchat legal problems.
Snapcash was a very simple feature to use as it used the regular number, expiration date and CVV (Card Verification Value) of a debit card. It allowed Snapchatters to shop, send and receive money without having to leave the app. Though the feature didn’t allow cancellation of payments once the process was completed.
Users don’t need to worry a lot. As many other apps are available for peer-to-peer money transfers like Apple Pay, Venmo etc. Snapcash feature would be soon removed. Currently, this feature is available on both Android and iOS in the United States for those users who have a debit card and are 18 or older.
Snap’s track record for security poses serious vulnerability of phishing to its users. In February,2018 a phishing attack resulted in exposing username and password of 50,000 Snapchat users.