Circle Pay is to shut is its payment App down next month and concentrate on developing new products based on Blockchain technology. Closure of this App will be a big blow to many especially in the Findom space and those using it to take deposits who have seen many of their cash based apps closed. The reason for the closure is uncertain though the company cited some disappointment in its lack of growth in the market being only ranked 121 in the world despite all the historic investment. I guess their profit margins must be slim that just doesn’t make it worth it to continue.
On this day, Google Pay UK also announced that it intends to close peer to peer payments from the 6th September 2019. This means you won’t be able to send or receive money using a gmail account. Much like Circle Pay, Google Pay is asking those with positive balances to transfer it out to their bank account before this date. Google instead intends to make a new service that will allow you to use Google Pay just to buy merchandise from retailers, web stores and the android market place. This will yet be another nail in the coffin for those whose business models rely on such peer to peer cash payment services.
End of the Google Pay P2P service
We are announcing the end of Google Pay P2P, our peer-to-peer (P2P) payments service, in the United Kingdom. Starting from 6 September 2019, you’ll no longer be able to send and request money through Google Pay’s P2P service in Gmail or on pay.google.com
What do you need to do?
If you have a net positive Google Pay balance in your account with us, you can transfer these funds to your bank account. Please sign in to your Google payments profile to transfer your balance into a bank account.
If you have a zero balance in your account, no further action is required on your part
Your new Google Payments Terms of Service
Starting on 6 September 2019, your Google Payments service will be offered by Google Ireland Limited (“GIL”) instead of Google Payment Limited (“GPL”). This means that your relationship with GPL and the electronic money (“e-money”) service they offer under the current Google Payments Terms of Service is ending. You will no longer have an e-money account with GPL to use for the P2P service (explained above in more detail) or for payments.
Instead, GIL will be offering you a new service under the new Google Payments Terms of Service, which will allow you to save and manage your payment credentials in one place in order to make purchases with Google and on Google marketplaces. Your new terms of service outline how your payment credentials will be stored and used.
For further information, please see the new Google Payments Terms of Service.
Nothing about your experience using Google services will change. GIL and GPL will work together to ensure that you have a smooth transition from GPL to GIL, including ensuring that information about your past transactions will continue to be available on the pay.google.com website. To accept the new terms, simply continue to use our services. No further action is required on your part. However, if you do not want to accept the new terms, you can stop using the applicable services. Thank you!
The Google Payments Team
I can’t help think when two major peer to peer payment systems announce in the same week they are ceasing operations a bit to much of a coincidence. Its makes me think has there been some sort of regulatory change when it comes to providing such financial services that makes peer to peer transactions suddenly too technically difficult, expensive or legally risky for big business to cope with.
The next question is which other peer to peer payment system will be next?