Online e-commerce company, Flipkart has decided to shut down its payment gateway business PayZippy just after a year its launch, reports Medianama on August 30^th 2014. The company’s recent investment in mobile payment gateway, Ngpay, seems to be the reason behind this surprising move.

Payzippy was launched to be a e-commerce payment gateway that would also work as a online wallet for customers, making payment for purchases easier and simpler. Within 6 months, Payzippy was employed by several e-commerce sites including BabyOye, BlueStone, JustEat, LensKart, MakeMyTrip, Travelyaari, Trendin, YepMe and Zansaar.

Even after such a glorious start in 2013, Payzippy had incurred a loss of Rs. 6.5 Lakh in its first year. Payzippy did not get the mobile wallet license from RBI, or probably did not apply. On the other hand, Ngpay is on the list of companies that have secured the mobile wallet license.

In an official statement, Flipkart spokesperson said, “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. 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.”

Statement made by Flipkart spokesperson suggests that even though PayZippy will be phased out, it may be integrated within Ngpay. The spokesperson further added that “Payments are core to Flipkart and we see this partnership giving rise to the largest mobile payments brand in India. Sourabh Jain’s 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.”