Circle Pay will phase out support for social payment apps

In recent days, Circle, a Goldman Sachs-backed encryption firm, is poised to stop supporting its social payment app, called Circle Pay, which has been launched in 29 countries, including the US, UK and some EU countries.

The decision marks a significant shift in direction for Circle’s products. The company recently cut about 30 jobs, or 10 per cent of its workforce, citing regulatory uncertainty.

It is reported that from July 8, The Circle Pay service will phase out support for user payments and fees. Circle Pay will then become less and less functional, and Circle will eventually remove all support for Circle Pay entirely on September 30.

Circle argues in an article that the future of finance will be based on open blockchain technology. The company also reminded all Circle Pay customers to withdraw their money as soon as possible, and encouraged bitcoin holders to transfer bitcoins to Poloniex accounts.

Circle has expanded its extensive encryption-related business, including Circle Invest and Circle Trade. The former allows users to buy 11 different types of bitcoins, while the latter is an over-the-counter market with more than $2 billion in monthly transactions.

Circle also owns Poloniex, an encryption exchange that offers more than 100 cryptocurrencies, and recently announced the acquisition of SeedInvest, an alternative trading system licensed by FINRA. Circle is also said to be applying for a banking licence.

Circle is also reportedly looking to raise $250 million in a new round of financing. The company has recently expanded its support for the dollar-linked stable currency USDC, adding partners to more than 100 exchanges, wallets, platforms, applications and service providers.