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Yahoo to Close Online-Payment Service

Saturday 23 October 2004 00:13 CET | News

Yahoos is shutting down four-year-old PayDirect, the decision comes about a year after financial services giant Citigroup turned off its c2it online payments service.

PayPal, aided by its affiliation with Web marketplace provider eBay, has come to dominate the online payments market. PayPal reported 56.7 million accounts at the end of the third quarter, a 61 percent increase from the year-earlier period. Yahoo launched PayDirect in July 2000 with partner CIBC National Bank. HSBC Holdings replaced CIBC as Yahoos joint venture partner in November 2001. Yahoo said PayDirect will be available until Nov. 22, but that users will not be able to create new accounts or send or receive money from people who are not current PayDirect customers. Transactions prior to Nov. 22 will be processed if the recipients accept the payments within 30 days. After that, Yahoo will cancel all payments. People will have until Feb. 15, 2005, to withdraw unused funds and check transaction records. By May 15, the entire site will shut down.


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Payments & Commerce