Snapchat seems ready to cash out of the mobile payments business.
The service will end on August 30. Snapchat will notify users soon, TechCrunch reported.
“Snapcash was our first product created in partnership with another company – Square,” said Snapchat in the statement. “We’re thankful for all the Snapchatters who used Snapcash for the last four years and for Square’s partnership!”
Snapchat could not be immediately reached for comment.
The payments processing for Snapcash is handled by Square. When a user adds a debit card account, they can start sending and receiving money by swiping into chat, typing a dollar sign and amount and hitting the green button to send.
However, Snapcash was overshadowed by much larger rivals in the mobile payments space. Those include Venmo, Square Cash and Zelle, created in partnership with several big banks including Bank of America and Wells Fargo.
This year, the total number of users of mobile payment apps in the U.S. will surge 30% to reach 82.5 million people — about 40.5 percent of U.S. smartphone users — according to research firm eMarketer. Zelle is expected to overtake Venmo as the most popular payments service this year, eMarketer said.
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