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When a user opens the mobile wallet, it redirects users to the page where the instructions are given on how to send the unused balance to bank accounts. Citrus wallet, PayU India's another payment wallet will continue their operations, company said.
“We will be terminating PayUmoney’s wallet, which is in partnership with RBL Bank. As part of the consolidation of our business, instead of operating two wallets, we have plans to focus our synergies on Citrus wallet and drive higher customer efficacy towards it,” said Jitendra Gupta, Managing Director, PayU India, in the press note, as reported by the VC Circle.
Naspers-backed PayU India bought Mumbai-based rival Citrus Pay for $130 million in September 2016. The joint entity Citrus has 30 million users.
The news of closing down the popular payment wallet comes after the Reserve Bank of India introduced new guidelines for the wallets.
The central bank set higher net worth requirements and made Know Your Customer (KYC) mandatory for users having up to Rs 10,000 in wallets, the Times of India reported.
PayUmoney has more than 3.5 lakh small- and medium-sized online businesses using their payment gateway solution to collect their payments.
Now, PayU India will focus on its credit-based product LazyPay to gain more consumers and business.