Flipkart is shutting down PayZippy to focus on Ngpay

PayZippy from PayPal
PayZippy from PayPal

Every e-commerce company wants to make it for you as easy as possible to pay for its products and services. You can pay Amazon.com and Google with a single click or with a single tap and Flipkart, wanting to compete with Amazon, doesn’t want to be an exception.

The problem in India is, and also in many other countries, that people don’t want to use their credit cards for making online payments because they don’t trust the e-commerce companies with this information. It’s another matter that the very same people will use their child’s birthdate as their email password. PayZippy was meant to solve this problem by allowing people to make payments without revealing their credit cards, just like PayPal. This service could be used on Flipkart and it would also be installed on third-party merchant websites. Just like PayPal, they needed to save their credit card information in their respective PayZippy accounts and whoever has enabled a PayZippy payment mode on the website could receive the payments without credit cards. This service is currently being used by websites like babyoye, Bluestone.com, Makemytrip, Travelyaari, Caratlane.com, Yepme, Zansaar, Lenskart and Yepme.

Flipkart is now phasing out PayZippy so that it can seriously pursue another payment gateway system called Ngpay that will enable people to pay via their mobile phones seamlessly, without much fuss. With more and more people using their smartphones to browse through e-commerce websites it is a logical step, although it is not clear what they’re going to do with the credit cards people have stored on their servers.

This link describes the reason in detail why Flipkart has decided to shut down PayZippy:

The real reason, it seems, that Flipkart couldn’t speed up PayZippy to become an online wallet before the Reserve Bank Of India changed its plan. After its announcement in July 2013; Flipkart had applied to become a Semi Closed Prepaid Online Wallet. However, since Flipkart shifted from regular e-Commerce (it owned the inventory) model to a marketplace model (merchants sell their products through Flipkart); it’d need a semi-closed wallet to achieve the transactions to be profitable. The marketplace model does not allow Flipakart to store customer’s credit card or debit card information. In August, the RBI announced a new list of operators who got the prepaid wallet license. The list includes Oxigen, PayTem, Mobikwik, Itz Cash. PayZippy didn’t feature in the list. Hence the decision to shut down.

About Amrit Hallan
Amrit Hallan is the founder of TechBakBak.com. He writes about technology not because "he loves to write about technology", he actually believes that it makes the world a better place. On Twitter you can follow him at @amrithallan

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