India’s largest e-commerce firm Flipkart has announced the closure of its one-year-old payment gateway PayZippy after the product failed to meet expectations. The company has announced a strategic investment in ngpay, a mobile payment gateway platform in India.
“Payments are core to Flipkart and we see this partnership giving rise to the largest mobile payments brand in India. (ngpay Chief Executive) 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,” said a Flipkart spokesperson.
In July last year, Flipkart launched PayZippy for merchants, which powered card payments for domestic merchant websites and mobile sites, offering better conversion rates and highest levels of security. The B2C version allowed users to store their card information just once with PayZippy and use it for making online payments on partner merchant sites. PayZippy tied up with merchants for launch offers for their initial customers. These included cash backs, discounts on transactions and gift vouchers on the merchant sites.
“While we phase out our own payments product, PayZippy, nothing changes for our customers, who will continue to enjoy all the benefits of a safe and secure payment system through Flipkart.com,” the spokesperson added.
However, Flipkart refused to comment further on the reasons for the shut down of PayZippy.