BidPay.com - the online money transfer service backed by Western Union - has pulled the plug on its service.

A note on its web site reads: "Effective December 31, 2005, BidPay.com, Inc. will be discontinuing operations. As a result, BidPay will no longer offer payment services to the online auction industry."

According to AuctionBytes.com, the firm told punters of plans to close the service just before Christmas. BidPay enabled punters to buy money orders online which could then be sent to people flogging goods on eBay.

In a statement a spokeswoman for BidPay told The Register that the firm had "communicated directly with many of its customers" about the closure.

"The decision to discontinue operation of BidPay.com was a purely strategic one, allowing BidPay's parent company to focus resources on its core businesses.

"We regret any inconvenience to BidPay.com users and thank them for their loyal patronage," she said. ®