Indian e-commerce website, Flipkart is shutting down its payment gateway business Payzippy, as it failed to perform according to the company’s expectations, says a report from Livemint,. The online retailer has launched this separate firm Flipkart Payment Gateway Services (FPGS) Pvt Ltd a year ago to provide payment solutions to merchants.
Also, Flipkart has made a “strategic investment” in Ngpay, a payment service and a marketplace that introduced mobile payments in India.
A Flipkart spokesperson also said in an email statement to Medianama that, “Payments is core to Flipkart and we see this partnership giving rise to the largest mobile payments brand in India. 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.”
Currently, Payzippy’s website is still live and other e-commerce companies like Babyoye, Bluestone, Lenskart, Makemytrip, Yepme, Zansaar etc. are using its services. The exact date for the closure of the services isn’t disclosed.
Flipkart had also tried to make Payzippy wallet work. While the payment gateway was a B2B product, the wallet was meant to be consumer facing, and will probably go down with the gateway as well.