Xoom to disable Merchant Payment Interface

Xoom, an online payment facility, sent out notices about 2 days ago that it will disable its Merchant Payment Interface after August 1, 2008 and suggests all users to remove links to such payment landing pages.

Currently, all Xoom users are able to create payment buttons or links which they can send to anyone for a remittance request. This payment landing page enables the payor (one who sends the money) will only need to fill up credit card or Paypal information to process the transaction.

Sample Merchant Payment Interface

After that, the payee will only have to wait for the money to be available within hours (either for pick up or direct deposit to bank accounts). By August 1, 2008, this feature will be phased out. Xoom cannot say whether they will re-introduce this very useful feature or completely write it off of their service.

By then, the only way to send money/remittances is when the sender logs into his Xoom account and use the “Send Money” function. Simply put, they pulling the plug on the “request money” which leaves everyone else using the “send money”. This features are very familiar with Paypal users as well.

It’s a little confusing actually and my guess is that Xoom has a security problem with the Merchant Payment Interface. My best guess would be high volume of fraudulent transactions in that front. It’s not an urgent security issue but is something I think Xoom feels they’re in the losing end. Why else would they disable such a feature and retain everything else intact? My guess is as good as yours.

Too bad. I’ve been using Xoom, for like, over 4 years now and that merchant facility has been a staple feature in most of my online transactions before the Paypal Philippines era. I guess it’s Paypal all the way from here onwards.