PayU India, which provides online payment processor services, is reportedly planning to shut down its mobile wallet business PayU Money. Instead, the company will focus more on its credit-based purchase platform LazyPay.
LazyPay allows the user to pay later for goods and services purchased online. The company has been focusing on adding new merchants across various sectors where instant credit can be a plug-n-play arrangement. The service enables the customer to make the payment after about 15 days of purchase. Pay Later option is being made available by even e-commerce players like Flipkart, as a way of shoring up transactions.
In an email sent to users, the company said,
We would like to inform you that the PayUMoney wallet issued by RBL will be closing its services on 31st January 2018. Although we are restricting loading money to PayUMoney wallet from today onwards, you can still shop with your saved cards on your favorite brands.
Users of the PayU Money wallet can transfer the amount to their bank accounts. The company will continue to offer its wallet services through Citrus even though it may not aggressively push it from now on.
The development of shutting down its mobile wallet service comes at a time when there is a cut-throat competition in the market. Also, many service providers are finding it difficult to keep the offering relevant following the guidelines from the RBI.
It’s noteworthy that PayU India had acquired Citrus Pay in 2016. Citrus Pay co-founder and PayU India MD Jitendra Gupta confirmed the development and said that they will keep the wallet live as long as there is a steady use case but the focus will be to push credit through LazyPay.