Flipkart invests in ngpay, to shut down its own payment gateway service PayZippy

India's largest e-commerce company Flipkart has invested an undisclosed amount in ngpay, a mobile payment gateway platform owned by Bangalore-based JiGrahak Mobility Solutions Pvt Ltd.

"Payment is core to Flipkart and we see this partnership giving rise to the largest mobile payments brand in India. Sourabh Jain's (founder of ngpay) 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," a Flipkart spokesperson told Techcircle.in.

ngpay is a free mobile app that allows users to buy goods and services via their mobile phones. Businesses can use the platform to offer their products or services, like movie tickets, flowers, books, airline tickets, gifts etc., to customers. The firm claims that its mobile commerce platform is being used by more than 100 merchants and over million users.

To shut down PayZippy

Flipkart has also said that it is shutting down its one-year-old payment gateway service PayZippy.

"The PayZippy team has created innovative payments solutions, and the IP/technology developed will continue to be power and improve payments for Flipkart under the customer platform," said a Flipkart spokesperson told Techcircle.in. "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."

However, the spokesperson declined to disclose the reasons for the shut-down.

The development was first reported by Medianama.

Launched in July last year, PayZippy enables card payments for merchants websites and mobile sites, while its B2C version allows customers to store their card details and make payments on partner merchant sites. It has also tied up with merchants to give offers like cash backs, discounts on transactions and gift vouchers to initial customers of the service.

(Edited by Joby Puthuparampil Johnson)