Payments company PayU India, which recently became independent of the Ibibo Group (MIH India) and rebranded its payment gateway to PayUMoney from PayUPaisa, has launched a semi-closed wallet service. To distinguish itself in an otherwise crowded market, the new wallet service gives you a 10% cashback for every transaction. However, do note that the maximum amount you can get as cashback is Rs 50. Among wallets, even Airtel Money offer cashbacks, but it has a monthly limit of Rs 100. It's not clear if PayUMoney has any such limits in place. It is also worth noting that the cashback is stored in the wallet itself and you can then use it for future transactions made on any website that uses PayUMoney payment gateway. The cashback scheme will help PayU get more customers for its payment gateway, but this point may not be interesting enough for merchants. However, PayU will now start storing basic card details as part of its wallet service, which should reduce friction in the purchasing process. The service is currently active on redBus and BookMyShow and PayU says that this wallet service is being used by 8,500 e-commerce companies, but it's not clear who they are. The company says on its homepage that RechargeItNow uses its service, but when we checked the site over the weekend it was using CitrusPay. PayUMoney competes with PayTM, Oxicash, Itzcash, ZipCash, apart from Flipkart's Payzippy. Types of Pre-paid Wallet Instruments 1. Closed System Payment Instruments, which are not reloadable with cash and do not permit…
