Nokia to discontinue mobile money service

By Kul Bhushan | Updated on 12-Mar-2012

12 Mar 2012 12:00

In spite of facing stiff competition from local manufacturers, Nokia has well managed to hold its market share in India. It recently launched its mobile payment service, Nokia Money in India. With the new service, Nokia was said to have moved past its rivals in terms of consolidating its base in the country. However, in a surprising move, the Finnish company has now decided to discontinue its mobile money business in India.

Nokia had entered the business in 2010 through a partnership with YES Bank. Later, it joined hands with Union Bank to offer services such as bill payments and money transfer. Nokia soon came up with its Nokia Money, which has some 2 lakh subscribers. These subscribers will be the first ones to bear the impact of the move. According to reports, the subscribers will be soon informed about Nokia discontinuing the service. The subscribers will be asked to use up the money deposited in the mobile money account. However, the company will continue the service next 3-4 months so that subscribers have enough time to use up the money. Moreover, the company will refund the registration fee collected from the subscribers. It is also going to approach the Reserve Bank of India to surrender the licence it took for launching the service.

According to reports, subscribers using the YES Bank and Union Bank services will not suffer as the two banks will take over the platform. Nokia is going to rope in another player to help these banks maintain the payment service.

Nokia’s decision to shun its mobile business has surprised many as it comes at a time when the mobile payment service is becoming an increasingly vital tool in a business’ armoury in India. It’s notable that three new mobile payment services were launched over the last month by different service providers – Airtel, HDFC, MasterCard and Visa.

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Source: Nokia to exit mobile money business globally