Flipkart, India’s largest eCommerce player announced that they are going to shut down its payment services PayZippy. PayZippy was launched one year back where eCommerce merchants can accept payments from all credit and debit cards.
The news was first reported by MediaNama. The PayZippy closure is linked to Flipkart’s strategic investment in ngpay. ngpay is mainly used in mcommerce and mobile is the future of online shopping according to the founders of Flipkart. ngpay can be used to book air, rail, bus and movie tickets, shop for your favourite brands and even recharge your mobile & DTH set.
Due to a change in our strategic direction, PayZippy will be discontinuing its payments offering. PayZippy will no longer be available as a payment option effective November 20th, 2014, according to an email communication by Flipkart to its PayZippy users and customers.
What this means to you?
Your account and existing saved cards will continue to work on PayZippy till November 20th, 2014. However, effective immediately, you will no longer be able to save new cards on PayZippy.
What will happen to the cards saved in your account?
Your saved cards will securely be migrated back to your associated Flipkart account on 20th November 2014. You will be able to manage all your saved cards through the “My Account -> Saved Cards” section at Flipkart.com. You can use these cards to conveniently shop at Flipkart.com.
Are your cards safe with Flipkart.com?
Flipkart uses world-class encryption technology while saving your card information on highly secure systems. Flipkart.com’s payment systems have passed stringent security audits like PCI DSS (Payment Card Industry Data Security Standards) that are conducted by industry experts, to ensure that your card information remains safe and protected at all times.
Why Flipkart is shutting down PayZippy?
As per Frost & Sullivan estimates, the network-based segment of m-Commerce applications in India will record revenues of US $1.26 billion with close to 72.5 million subscribers by end 2018. With close to 900 million wireless subscribers and 150 million mobile Internet users in India, m-Commerce presents itself with a huge potential. While m-Commerce is still in a nascent stage in India, the ever-increasing wireless subscribers and Internet base, along with increased affordability and availability of smartphones, bode well for the market.
With the launch of new low-end smartphones from Motorola, Asus, Xiaomi and Indian players like Micromax, Lava, Karbonn, it’s becoming more affordable to the customers to purchase it from mobile/tablets than desktop/laptop. Almost all the eCommerce players has their mobile apps and the percentage of mobile in their revenues is increasing every quarter. According to this report by TechCrunch, Snapdeal now gets over half of their sales through mobile, up from 5% a year ago. Almost 45% of Snapdeal’s transactions are from the mobile app and remaining 55% from the mobile website.
As Indians are going mobile, it’s good time for companies like ngpay, paytm, mchek etc. Hope these mobile payment services companies are weaving their dreams.
Image Reference: Mozido