Snapchat Officially Shuts Down its ‘Venmo Knock-off’: Snapcash

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You may be thinking… “What the heck is ‘Snapcash’? So for those of you who’ve never heard of it, it’s basically venmo, but instead of it being used to pay friends for activities that can most accurately described in a string of carefully selected emoji’s, it was used mostly as a way pay adult performers for private content over Snapchat. However now it seems Snapchat will abandon it’s ambitious peer-to-peer payment feature on August 30th. Shutting down the feature will bring an end to Snapchat’s four-year partnership with Square to power the feature for sending people money.

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As you can imagine, Snapcash seems to have become more of a liability than a utility. With apps like Venmo, PayPal, Zelle, and Square Cash itself, there were plenty of other ways to pay back friends for drinks or Ubers, so Snapcash may have seen low legitimate usage. Meanwhile, a quick Twitter search for “Snapcash”surfaced plenty of offers of adult content in exchange for payments through the feature. It may have been safer for Snapchat to ditch Snapcash than risk PR problems over its misuse.

Snapcash gave Snapchat a way to get users to connect payment methods to the app. That’s increasingly important as the company aims to become an e-commerce platform where you can shop without leaving the app. Having payment info on file is what makes buying things through Snapchat easier than the web and draws brands to use Snapchat storefronts.

We’ll see how Snapchat plans evolve its commerce strategy without this driver. Earlier this month, it was revealed that Snapchat’s code contained mentions of a project codenamed “eagle” which was designed to allow users to scan an object or barcode with their Snapchat camera and see product results in Amazon. But since the initial 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.

Snapcash won’t be a part of that future, though. Given Snapchat’s cost-cutting efforts including layoffs, its desperate need to attract and retain advertisers to hit revenue estimates its missed, and its persistent bad rap as a sexting app, it couldn’t afford to support unnecessary features or another scandal.

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Sam Cooper

Sam Cooper

Spent 10+ years in corporate finance before I realized how much more I enjoyed writing and advising people on how to achieve financial freedom. We all have different goals, what are yours?

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