Canada-based Vogogo Inc., a bitcoin service startup has announced the closing of its payment processing service next month following its failure to gain traction.



Apart from failure in generating revenues, the company’s decision to close its processing unit comes after the announcement that Vogogo’s president and CEO Geoff Gordon and chief revenue officer Rodney Thompson would resign.



“The payment business, there wasn’t a lot of interest in it. There wasn’t a lot of revenue or customers there. So, the simplest way to preserve cash value to the organization was just to shut that piece down,” CFO of Vogogo, Tom Wenz told Coindesk.



Wenz also pointed to the decline of the company’s public stock as a factor to the closure. “The current business model wasn’t being supported and that was reflected in the stock price,” he said.



San Francisco-based bitcoin wallet and platform Coinbase, announced its expansion to Canada last year. The company has been using Vogogo as a payments processor for the Canadian market. Upon the announcement of Vogogo’s shutdown, Coinbase has been affected and the company told its customers in Canada that no further support will be offered after the end of this month.



In a message to Canadian Coinbase customers, the company said, “As of August 1, Coinbase’s Canadian payments provider, Vogogo, will be shutting down its payment processing business. When this occurs, Coinbase will no longer be able to support Canadian EFT transfers, Interac transfers, or the storage of customer CAD on Coinbase. All customers CAD stored with Coinbase MUST be withdrawn off site or converted to digital currency by July 29th. If you hold CAD in your Coinbase account, you must liquidate your CAD holdings before July 29th,” as reported by LeapRate.



According to the public statements, Vogogo has been searching for new revenues and directions since April this year and the company announced that its board of directors was looking for alternatives. The company also said that it would downsize as part of a cost-cutting plan, Coindesk reported.



Vogogo Inc. has provided payment processing and related transaction risk services. The Company has developed software that administers multiple electronic payment types including card payments, pre-authorized debit, direct deposit, peer-to-peer and online banking payments for the US, UK and Canadian markets.