US-based online payment processor iKobo is suspending operations after its fundraising efforts have failed.

According to company representatives, this is the result of the lead investor's decision to draw back. The identity of the venture firm or the size of the financing have not been revealed.
Ikobo is an online payment processor which can be used for person-to-person money transfers performed usinga prepaid credit card mailed to the recipient. It allows consumers to use credit cards, debit cards, or internet bank accounts to send a re-loadable Visa prepaid card to recipients.
According to a letter sent by the company to its customers, the cards issued by Palm Desert National Bank will be active until 13 November, 2008. Nevertheless, after this period, the card funds are still guaranteed. IKobo customers are advised to withdraw their money at ATMs or make purchases in order to spend the balance of funds on their cards until the above-mentioned date. According to the bank cardholder agreement, after 13 November, the remaining balance is to be refunded to the sender.