Online Payments Provider Bitpass to Shut Down

Authored by Mark Hefflinger on January 22, 2007 - 9:36am.

San Mateo, Calif. - Bitpass, a four-year-old provider of online payment processing services, has announced that it is discontinuing operations, due to "circumstances beyond our control," CEO Matthew Graves wrote in an e-mail to customers.

Existing Bitpass customers have seven days to spend any existing balance in their Bitpass accounts. On Jan. 26, all U.S. Bitpass Buyer accounts will be closed.

From that point, Digital River "will begin the process of refunding all unspent monies to the account holder." Bitpass said the changes do not affect buyers and merchants with Australian dollar denominated accounts.

San Mateo, Calif.-based Bitpass raised a total of $13 million in venture capital financing during its course of operations.