PayZippy Shut Down By Flipkart - It Had To!

PayZippy, the payment gateway by Flipkart is being shut down. I personally haven't been able to confirm the news (update: it's confirmed via an official email from Flipkart. See the email in post #4 below) , but since almost every major media is reporting the shut down, I've a solid reason to believe that they are indeed shutting down. I'd not care about it because there are several payment gateways available in the market; but I decided to write because we at CrazyEngineers were in talks with PayZippy officials for setting up of a Payment Gateway. I'll describe our experience with them below.

First - Why is PayZippy being Shut Down by Flipkart?

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 #-Link-Snipped-# 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.

What happens to the existing customers?

My guess is that the existing customers who've stored their card information with PayZippy will continue to use it for all the items sold by WS Retail - the company that manages inventory for Flipkart. Let's wait for some official update. I'm not sure what will happen to the existing merchants who're using PayZippy payment gateway on their eCommerce stores.

Our Experience With PayZippy

I personally loved PayZippy for their interface. We decided to integrate their payment gateway here at CrazyEngineers. I expected them to be fast and efficient; but I was totally surprised with their representatives informed me about the truckload of paperwork involved in getting on-board. We were asked to print, scan, sign & stamp huge set of documents and also work out agreement. It was all fine - but the process itself was so time consuming that the entire process looked totally insane. We opted for their direct rivals - and they were super duper fast. 90% of the process was online and their customer support was excellent. I must also congratulate PayZippy's representatives we interacted with for being fast and detailed in their responses. It turns out that they were only trying to comply with the guidelines set for them.

As of now, I'm not sure if PayZippy is accepting new merchants or online buyer registrations. Their official website does not mention anything about the gradual phase out of the PayZippy product.

Will update as soon as I get more information. For startups that are looking to integrate payment gateway, share your thoughts, experiences with PayZippy and other payment gateways in India. It'd help a lot of entrepreneurs.

Replies

  • Anoop Kumar
    Anoop Kumar
    One thing about payZippy is the name. For a normal customer who trusts Flipakart and on payment options it says use payZippy and we will store your card details.This is little trust issue.
    If Flipkart would have name is Flipkart wallet, I guess more people would have registered for this.
    Anyway these are small things in internet world, depends on current consumer mood. The service get hit or miss.
  • Kaustubh Katdare
    Kaustubh Katdare
    #-Link-Snipped-# - Yep; but it matters to only those who've been shopping regularly and know that PayZippy is offered by Flipkart. Our experience so far is that people are generally skeptical about making payments online. The students who bought the t-shirts invariably asked for COD option.
  • Kaustubh Katdare
    Kaustubh Katdare
    Official Mail from PayZippy to all the merchants -

    Dear Merchant Partner,

    We regret to inform you that, due to a change in our strategic direction, PayZippy will be discontinuing its payments solution from the 20th of November 2014.

    We appreciate your continuous patronage over the period of our association.

    We will be phasing out the PayZippy service in a gradual manner to minimize any impact on your business. We will be calling you shortly to discuss the status of your application with us.

    Wishing you all the best with your endeavour.

    Team Payzippy
  • Kaustubh Katdare
    Kaustubh Katdare
    A few more words: I've been reading news that Flipkart will phase out PayZippy and make way for ngpay - another payment gateway. Flipkart seems to have invested in that company and is likely to integrate it in Flipkart's marketplace model. ngpay is focused on mobile payments so it's definitely interesting to see how Flipkart goes about it. I'm also not sure whether PayZippy will continue to exist on Flipkart's own website.

    Flipkart - please don't shut down eKart!

    I just hope that Flipkart opens up their logistics company eKart to everyone and operates it as a separate business. I hope they've gotten it 'right' because if you can offer a better service at a reasonable rate, I'm quite sure you will beat most of the courier companies out there hands down.
  • Bashiruddin Naik
    Bashiruddin Naik
    Dear Merchant Partner,

    We regret to inform you that, due to a change in our strategic direction, PayZippy will be discontinuing its payments solution from the 20th of November 2014

    .

    We will be phasing out the PayZippy service in a gradual manner over the next few months.

    We regret any inconvenience caused to you due to this. Please do write back for any clarifications or queries.

    We appreciate your interest in our product and we wish you all the best with your endeavour.


    Team Payzippy

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