From Payzippy to Ngpay: Flipkart’s Strategic Move towards More Promising Gateway

Tuesday, 09 September 2014 | Written by Purpletree |

Just a year back in July 2013, the Indian ecommerce giant Flipkart had announced the launch of its proprietary payment gateway called Payzippy. It undoubtedly facilitates card payments on merchant sites, whereas its B2C variation allows keeping the card details for paying on partner merchant sites. Moreover, the gateway also partnered with merchants to provide attractive offers such as discounts, cash backs, and gift vouchers to early customers.

However, suddenly after a year, Flipkart surprised the ecommerce market by shifting from Payzippy to Ngpay, a mobile gateway by JiGrahak Mobility Solutions located in Bangalore. It claims to take this move for strengthening its service of mobile payments to improve the shopping experience on mobile ecommerce platform. So, what made Flipkart to do so? Let’s find out!

 Payzippy versus Ngpay

Ngpay is a free app enabling users to purchase merchandise through mobile phones. Firms such as Flipkart can take full advantage of this platform to offer movie tickets, airline tickets, gifts, books, train tickets, satellite TV subscriptions, flowers, and more to their customers. According to the ecommerce giant, millions of merchants are using this free app for boosting mobile transactions with ease. This has gained its attention towards the app.

However, the source of motivation is the unexpected loss incurred by Payzippy in FY13 as well as failure to cross the transaction milestones. In addition, Payzippy’s system of payment was more inclined towards Web-only users. However, prominent giants such as Flipkart need to tap the mobile market for generating more transactions. There is really no point in sticking to B2B business, unless more transactions are guaranteed.

Flipkart has recognized the fact that mobile commerce shares almost 50% of its total sales. The company has also realized that its in-house app is unable to compete with more scoring gateways such as Ngpay, Billdesk, EBS, and Zaakpay. As a result, Payzippy is simply not a core business, which triggered the need for the company to associate with someone for a strong payment service on mobile platform.

With one transaction happening per 0.1 second, Ngpay seems to be a truly promising app for making good business by focusing on improving mobile gateways of payments for customers. As a result, the Payzippy team will shift to Ngpay.

Changes for Customers?

Although the mobile payment gateway is changing, nothing actually changes for the shoppers. Everything will remain the same and that the customers will enjoy the same benefits but now with a more popular and safe payment system via Flipkart.

The Payzippy team is already experienced in developing creative payment solutions, and that the technology is bound to be powerful resource for improving payments on the site. With the partnership with Ngpay, Flipkart only looks ahead for being the India’s largest mobile payment brand.

The number of mobile shoppers in India is certainly going to grow exponentially, which means the ecommerce providers need to ensure easier and safer payments and mobile wallets. Therefore, Flipkart considers its payment system at its business core, which has inspired it to make it better and stronger.

The Rise of Mobile Commerce in India

The Indian ecommerce industry witnessed a significant transformation with the rapid adoption of smartphones and mobile internet. As more consumers began shopping through mobile devices, businesses were forced to rethink their payment strategies and customer experiences.

For leading ecommerce companies, optimizing mobile transactions became just as important as maintaining a strong online storefront. This shift created opportunities for specialized mobile payment platforms that could deliver faster, safer, and more convenient transactions.

Why Mobile Payments Became a Business Priority

Mobile commerce is no longer a secondary sales channel. It has become one of the primary drivers of ecommerce growth.

Key factors contributing to mobile payment adoption include:

• Increasing smartphone penetration
• Affordable mobile internet access
• Growing customer trust in digital payments
• Demand for one-click checkout experiences
• Expansion of mobile wallet technologies

For large ecommerce companies, improving the payment experience directly impacts customer retention and conversion rates.

Payzippy vs Ngpay: Understanding the Difference

Payzippy's Strengths

Payzippy was designed as Flipkart's proprietary payment gateway, offering:

• Secure online payments
• Stored card functionality
• Merchant partnerships
• Cashback and promotional offers
• Integrated ecommerce payment processing

However, its primary focus remained web-based transactions during a period when mobile commerce was accelerating rapidly.

Ngpay's Advantages

Ngpay emerged as a strong mobile-focused platform by providing:

• Mobile-first shopping experience
• Faster transaction processing
• Access to multiple merchant categories
• User-friendly mobile interface
• Simplified digital purchasing journey

Its strong focus on mobile users made it an attractive option for businesses looking to capitalize on the growing mobile commerce market.

Strategic Lessons for Ecommerce Businesses

Flipkart's decision highlights several important lessons for ecommerce entrepreneurs:

Follow Customer Behavior

Businesses must continuously analyze where customers are spending their time. As mobile usage increases, companies should adapt their technology accordingly.

Invest in Scalable Payment Infrastructure

Payment systems should be capable of handling growing transaction volumes while maintaining speed and security.

Focus on User Experience

A smooth checkout process can significantly improve conversion rates and customer satisfaction.

Prioritize Innovation

The ecommerce landscape evolves quickly. Companies that embrace innovation often gain a competitive advantage.

The Importance of Choosing the Right Payment Gateway

For online stores, selecting the right payment gateway is critical. A reliable payment solution should provide:

• Secure transactions
• Fast processing speeds
• Mobile compatibility
• Multiple payment methods
• Easy integration with ecommerce platforms
• High uptime and reliability

Modern ecommerce businesses should evaluate payment providers based on both current needs and future growth requirements.

Impact on the Ecommerce Industry

The move from Payzippy to Ngpay reflected a broader industry trend toward mobile-first commerce. It demonstrated that even large ecommerce companies must adapt to changing consumer preferences and technological advancements.

Today, mobile payments continue to dominate digital commerce, with businesses investing heavily in payment innovation, digital wallets, and frictionless checkout experiences.

Conclusion

Flipkart's transition from Payzippy to Ngpay was more than just a payment gateway change. It represented a strategic shift toward mobile commerce and customer-centric innovation. The move highlighted the importance of aligning technology investments with consumer behavior and market trends.

As ecommerce continues to evolve, businesses that prioritize secure, efficient, and mobile-friendly payment experiences will be better positioned for long-term success.