In an interesting move, Indian Ecommerce firm FlipKart has decided to close down its payment gateway service PayZippy.
The move comes as the result of poor performance, not meeting FlipKart’s expectations. The payment solution was first unveiled to merchants in July 2013 as Flipkart Payment Gateway Services (FPGS) Pvt Ltd. In December it was re-launched and re-branded as PayZippy to distance itself from the FlipKart moniker on other merchants’ websites.
The closure of PayZippy will prevent from new merchants from joining the service. FlipKart stated they will continue to support existing merchants with their FliPkart.com payment service.
"Payments is core to Flipkart and we see this partnership giving rise to the largest mobile payments brand in India. Sourabh Jain's expertise will help us drive innovation in payments, with features and products that provide a competitive end-to-end customer experience, to redefine the payments ecosystem in India," stated a FlipKart spokesperson.
With the announcement of PayZippy’s closure, FlipKart has invested in local Indian mobile payment solution firm ngpay.
From recent stories coming out of India, FlipKart seems to be on the verge of facing serious competition. A looming ease on FDI restrictions in Ecommerce is expected soon, and global industry leaders like Amazon, Walmart, and eBay are gearing to go in the region at full force, once allowed. The decision to shed some weight could point to FlipKart financially preparing itself for the soon to arrive competition.
SOURCE
