Circle to Close Its Payment App, Focus on New Financial Products

Peer-to-peer payments technology firm Circle is closing its payment app Circle Pay in order to develop new crypto financial services, according to an announcement published on June 13.

Per the blog post, Circle will start terminating the operation of Circle Pay, a fiat money sending service with a social messaging component, from July 8, 2019, and will fully close support for the app on Sep. 30. Specifically, on July 8 the app’s users will no longer be able to add or send money to anyone through their Circle Pay account.

Circle further hinted that it is delving into new blockchain-based financial products such as launching new wallet services and facilitating digital currency adoption through cryptocurrency exchange Poloniex.

In late May, Circle laid off 30% of its staff due to an “increasingly restrictive regulatory climate in the United States.” Announcing the firings, Circle CEO Jeremy Allaire noted that “Circle remains strong and healthy, and we will continue to drive new product innovation and growth globally, working with jurisdictions that offer forward-looking policies regulating digital asset businesses, while we press for more balanced crypto policy in the U.S.”

It was also reported that Circle had purportedly lowered its March fundraising goal of $250 million by 40%, seeking thus to raise $150 million.

Allair had previously outlined that the cryptocurrency space needs regulatory certainty and the current definition of cryptocurrency is too broad. Allaire argued that existing laws cannot address the cryptocurrency issue:

“We urge lawmakers to recognize the unparalleled economic power that permissionless innovation has unleashed and to act to let crypto and blockchain technologies flourish. We know lawmakers want to support economic growth and want them to seize the opportunity to lead the charge.”