From Payzippy to Ngpay: Flipkart’s Strategic Move towards More Promising Gateway
Tuesday, 09 September 2014 | Written by qtriangle |
Just a year back in July 2013, the Indian ecommerce giant Flipkart had announced the launch of its proprietary payment gateway called Payzippy. It undoubtedly facilitates card payments on merchant sites, whereas its B2C variation allows keeping the card details for paying on partner merchant sites. Moreover, the gateway also partnered with merchants to provide attractive offers such as discounts, cash backs, and gift vouchers to early customers.
However, suddenly after a year, Flipkart surprised the ecommerce market by shifting from Payzippy to Ngpay, a mobile gateway by JiGrahak Mobility Solutions located in Bangalore. It claims to take this move for strengthening its service of mobile payments to improve the shopping experience on mobile ecommerce platform. So, what made Flipkart to do so? Let’s find out!
Payzippy versus Ngpay
Ngpay is a free app enabling users to purchase merchandise through mobile phones. Firms such as Flipkart can take full advantage of this platform to offer movie tickets, airline tickets, gifts, books, train tickets, satellite TV subscriptions, flowers, and more to their customers. According to the ecommerce giant, millions of merchants are using this free app for boosting mobile transactions with ease. This has gained its attention towards the app.
However, the source of motivation is the unexpected loss incurred by Payzippy in FY13 as well as failure to cross the transaction milestones. In addition, Payzippy’s system of payment was more inclined towards Web-only users. However, prominent giants such as Flipkart need to tap the mobile market for generating more transactions. There is really no point in sticking to B2B business, unless more transactions are guaranteed.
Flipkart has recognized the fact that mobile commerce shares almost 50% of its total sales. The company has also realized that its in-house app is unable to compete with more scoring gateways such as Ngpay, Billdesk, EBS, and Zaakpay. As a result, Payzippy is simply not a core business, which triggered the need for the company to associate with someone for a strong payment service on mobile platform.
With one transaction happening per 0.1 second, Ngpay seems to be a truly promising app for making good business by focusing on improving mobile gateways of payments for customers. As a result, the Payzippy team will shift to Ngpay.
Changes for Customers?
Although the mobile payment gateway is changing, nothing actually changes for the shoppers. Everything will remain the same and that the customers will enjoy the same benefits but now with a more popular and safe payment system via Flipkart.
The Payzippy team is already experienced in developing creative payment solutions, and that the technology is bound to be powerful resource for improving payments on the site. With the partnership with Ngpay, Flipkart only looks ahead for being the India’s largest mobile payment brand.
The number of mobile shoppers in India is certainly going to grow exponentially, which means the ecommerce providers need to ensure easier and safer payments and mobile wallets. Therefore, Flipkart considers its payment system at its business core, which has inspired it to make it better and stronger.