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Flipkart invests in Ngpay, shuts down Payzippy

Tuesday 2 September 2014 08:08 CET | News

Indian online marketplace Flipkart is phasing out its payment gateway business Payzippy and invests in mobile payment company Ngpay, MediaNama reports.

Payzippy is to continue to power payments for its website lists clients such as babyoye, Bluestone.com, Makemytrip, Travelyaari, Caratlane.com, Yepme, Zansaar, Lenskart and Yepme.

Ngpay offers ticketing from Indian Railway Catering and Tourism Corporation, multiple bus travel services, flight tickets, apart from recharging and top-ups, cinema tickets and events. Payments are allowed via Mastercard, Visa, Maestro and American Express. It raised USD 2.2 million from Helion Venture Partners in 2006.

Payzippy was announced on July 2013, following which, the company had applied for a semi-closed prepaid wallets license with the Reserve Bank of India (RBI). This was necessary for the company to restart its wallet service for customers. Flipkart had shifted from an ecommerce model (wherein it took ownership of inventory that customers eventually bought) to a marketplace model (where customers bought products from vendors via Flipkartā€™s online technology platform) early in 2013. In an ecommerce model, businesses can operate a closed wallet, which allows customers to store money (or buy credits) from the store, and use it to purchase products from the same store. The shift to a marketplace model meant that the wallet could not be used to purchase goods from third party merchants, for which a semi-closed prepaid wallet license is needed.


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Keywords: Flipkart, Ngpay, Payzippy shut down, India, wallet, online marketplace, payment gateway, mobile payments
Categories: Payments & Commerce
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Countries: World
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Payments & Commerce