VENICE, Calif. — Snapchat, which teamed up with mobile company Square in November 2014 to roll out Snapcash for easy payments, has decided to pull the plug on that service on Thursday, Aug. 30.
In an announcement of its impending death, Snapchat said,” We’re thankful for all the Snapchatters who used Snapcash for the past four years and for Square’s partnership.”
Users for "next steps," the Venice, Calif.-based company said, will be notified via the application and through the Snapchat support site.
Snapchat officially did not address why it was ending its service, but it's likely that the feature simply failed to catch on with the masses, considering there are now so many other mobile payment services available.
Jonathan Corona, MobiusPay’s vice president of compliance, told XBIZ the problem with Snapcash was that it was a novelty and not a service that could immediately pay out.
MobiusPay is one of the top online merchant processing companies in the adult space.
“In today's world of instant gratification, one must adapt or die. Snapcash was a neat gimmick, but that's all it was,” Corona said. “The end user wants immediate spend-ability.
“I liken it to a payment service provider/aggregator versus a direct merchant account. The PSP pays out weekly and the direct merchant account pays out daily, with no deposit minimums.”
With the announcement to dump Snapcash, the company noted that it is focusing on several other initiatives.
It recently started selling its second-generation Spectacles and introduced a new developer kit that lets third-party app makers integrate some of its best features like Bitmoji and publicly shared stories.