Flipkart has always acknowledged that online businesses need to do better in India. In a Conference in 2013, Flipkart said that the eco system of banks, payment networks, Ecommerce players is failing, when it comes to payments because 25% or more transactions fail. Its not a good scenario and there is a need to stop that. To this end, Flipkart launched their own payment gateway – PayZippy – in July last year.
Now however, Flipkart is shutting down PayZippy as it failed to perform to expectations. The eCommerce giant also made a “strategic investment” in mobile payments app, ngpay.
“Payments is core to Flipkart and we see this partnership giving rise to the largest mobile payments brand in India,” an ngpay spokesperson told Livemint. “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.”
Previously, Helion Venture Partners had invested a sum of $2.2 Mn in ngpay.
Some of the existing players in the online payment gateway space in India include CCAvenue, PayTM, PayU, BillDesk, ZaakPay, Times of Money’s Direct Pay and even banking institutions for high volumes such ase ICICI, HDFC, Citi Bank etc.
“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,” Flipkart told Livemint.