The fin-tech startup Citrus now lets go of its PPI licence. The move of the company came only after its acquisition by PayU.
Citrus disappeared from the recent list of RBI approved Prepaid Payment Instrument licensees. So now Citrus has lost or better said, dropped its wallet. Now all the users of Citrus wallet will resettle at the PayU wallet services. However, their gateways are to run separately for another year. Out of the three million daily transactions through PayU, just 1% is through the wallet. The PayU-Citrus clubbing claims over 200,000 merchants. PayU has 120,000 whereas Citrus holds 110,000 of the total.
Last year, in one of the largest fin-tech industry deals, the PayU acquired the Mumbai-based Citrus Pay for $130 million. Another big deal was the acquisition of FreeCharge by the Snapdeal for $450 million. Now, Snapdeal reportedly is selling it out for merely $150 million.
Post the acquisition by PayU, Amrish Rau, the MD of Citrus Pay would be directing the merged firm. Amrish would be reporting to directly to the PayU CEO Laurent Le Moal. Jitendra Gupta would take over the credit wing of Citrus. Also, Nitin Gupta leaves to pursue his entrepreneurial endeavour.
RBI issued some recent guidelines for companies wanting to surrender their PPI licence. RBI suggests some measure to digital wallet firms deciding to discontinue their services. Now such companies would have to notify its customers about it. They must let their users spend or get refunds of their amounts in the wallet before a fixed point of time.
There has been a tremendous surge in the business of digital wallet companies in India. Post the demonetization; the digital wallet options gain incredible popularity and customers. Also, the app downloads and traffic for such enterprises have multiplied. Since the government of India announced its decision of note-ban, Paytm became the biggest beneficiary. The Paytm witnessed a 1,000 percent increase in adding money to the wallets.
Amazon also obtained the PPI licence from RBI short while ago. Now the company would run its wallet in India. Digital wallet businesses in India expect to rise to 35-40 of the total transactions in country’s economy. So now Amazon is eyeing to become the leader in one of the fastest growing “Digital Wallets” sector in India.