In a notice on , Yahoo said it will begin to shutter the service on Nov. 22. Beginning on that date, the Web portal will no longer let people open new accounts or send and receive payments from non-PayDirect users.
Transactions prior to Nov. 22 will be processed if the recipients accept the payments within 30 days. After that, Yahoo will cancel all payments. People will have until Feb. 15, 2005, to withdraw unused funds and check transaction records. By May 15, the entire site will shut down, the notice said.
"We are discontinuing PayDirect as part of our efforts to focus the company on core priorities," Yahoo spokesman Brian Nelson said Friday.
Yahooin 2000 as a payment system for its online auctions customers. The company months earlier to jump-start the efforts.
Since then, Yahoo has retreated from parts of its auctions business. In 2002, the company said it wouldand point its customers to industry giant eBay. Yahoo still runs its United States-based auction site and accepts PayPal payments.
PayDirect has gone through its own share of changes. The service was originally free, butonto the service in 2001 to expand its nonadvertising revenue. Eight months later, it and restored PayDirect as a free service.