Yahoo! announced late last week that it will be closing its online payment service PayDirect next month as it struggled to compete with eBay’s PayPal service. PayDirect didn’t gain enough users to justify a continuation.
A Yahoo! spokesperson said that “Without the large user base to support PayDirect, the business doesn't scale." PayPal dominates the online payment market, reporting a 61% increase in users for the 3rd quarter, compared with 2003.
PayDirect will be available for transfers for existing users until the 22nd of November, and withdrawing of an account balance and viewing transfer history will be available until February next year. No new accounts will be available.
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