Naspers group-owned PayUMoney to shut down wallet services this month

Naspers group flagship company PayUmoney wallet is shutting down its services this month.

The wallet firm is asking users to transfer the wallet amounts back into their bank accounts. PayUmoney app redirects users to the website where it gives instructions on how to send unspent wallet balances.

In a response to Entrackr queries, PayUMoney said, "Yes we are closing PayUmoney Wallet services effective 31st January 2018. Though loading money is disabled, you can continue to use your wallet balance/saved cards to shop at your favourite brands."

Medianama first reported the development. The company will be launching a new product instead and users will be able to use saved cards on all websites and app, it added.

PayU India is the flagship company of Naspers group which is a $25 Billion internet and media conglomerate listed on London and Johannesburg stock exchanges respectively.

Earlier, in Aug 2016, the company got a semi-closed prepaid wallet licence from the Reserve Bank of India (RBI). However, PayUmoney had got the requisite wallet licence from RBL Bank before.

Recently, RBI in its new guidelines mandated higher net worth requirements, increased KYC and linking to Aadhaar, reduction in the amount of money a wallet can hold. It asked all wallets to have KYC similar to bank accounts.

PayU is one of the leading payment service providers and its clientele includes the likes of Jet Airways, Amazon, Airtel, Snapdeal, Jabong, Ola, Bookmyshow, various insurance companies, including several others. The firm also integrated with UPI.

The payment wallet has the presence in Asia, Central and Eastern Europe, Latin America, the Middle East and Africa. With an active user base of 30 million, it claims to process 150 million transactions in 2016 worth a combined $4.2 billion.