Snap (NYSE:SNAP) — parent company of Snapchat — announced that the company is planning on shutting down its mobile payment service Snapcash at the end of next month.
The service has been around since November 2014 as part of a partnership with mobile payments services provider Square (NYSE:SQ) as a way of taking advantage of the growing social media platform, allowing users to send payments through Snapchat. However, Snapcash will no longer be available to users starting on Aug. 30.
The news was released by TechCrunch as the publication found buried code within the Android app that revealed that Snapcash is being phased out. The service had been made available to Snapchat users that use either Android or iOS in the U.S. if they have a debit card and are 18 or older in age.
Once the TechCrunch piece came out, Snap confirmed that Aug. 30 will be the final time that users will be able to use the service, forcing them to potentially use another of Square’s services.
“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!” a spokesperson told the publisher.
It is unclear why Snap is getting rid of Snapcash as the company is offering more in-app purchases than before nowadays.
SNAP stock gained 0.7% on Monday.
