Kaustubh
Member • Aug 31, 2014
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.
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.
