Circle set to shut down its payments app, looks to new products

Startups • June 13, 2019, 12:58PM EDT

UPDATED: June 13, 2019, 1:05PM EDT

Circle, the Boston-based cryptocurrency firm, announced Thursday that it is shutting down one of its Circle Pay app as the firm shifts its attention to building out other businesses.

Circle Pay allows users to send and receive digital currencies similarly to payments apps like Venmo and Square's Cash App. The product, which has struggled to gain significant traction, will officially shut down in September. Circle Pay currently sits at number 121 on the list of top downloaded finance app in the app store. Venmo and Cash app sit at number two and number one, respectively.

The firm said customers would no longer be able to send money through the app on July 8. All funds remaining on the platform after July 31 will be returned to customer bank accounts.

The firm said that it is exploring new products, such as "new wallet services, building upon the success of USDC, driving crypto adoption through Poloniex."

Aside from Circle Pay, Circle runs an over-the-counter trading desk, a security token platform, SeedInvest, and an exchange, Poloniex. The news is on the heels of recent lay-offs. In May, the firm said it laid-off 10% of its staff, citing regulatory headwinds.

About Author

Frank Chaparro is Host of The Scoop podcast and Director of Special Projects. He also writes a biweekly newsletter. Chaparro started his career at Business Insider, where he specialized in the intersection of digital assets and Wall Street, market structure, and financial technology. Soon after joining Business Insider out of Fordham University, Chaparro was interviewing top finance and tech executives, including billionaire Mark Cuban, “Flash Boys” star Brad Katsuyama, Cboe Global Markets CEO Ed Tilly, and New York Stock Exchange President Tom Farley. In 2018, he become a sought after reporter in the crypto world, interviewing luminaries such as Tyler Winklevoss, the cofounder of Gemini, Jeremy Allaire, the CEO of Circle, and Fundstrat head Tom Lee. For inquiries or tips, email [email protected].