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Citrus Pay to surrender its wallet and BBPS approvals following acquisition


Citrus Pay, which was acquired for $130 million by payments company PayU this month, will be surrendering its semi-closed wallet licence and its approval to operate a Bharat Bill Payments Operting Unit (BBPOU), co-founder Jitendra Gupta told MediaNama.

“We’re going to merge our licence into PayU’s licence and we will initiate the process of shifting our customers to PayU,” Gupta said.

Note that PayU recently got a semi-closed wallet licence from the Reserve Bank of India (RBI) and it also got an in-principle nod to operate a BBPOU. Citrus Pay had got a conditional nod from the RBI as it did not meet the net worth requirements, Gupta said. The RBI had mandated that payment companies who wished to set up a BBPOU needed to have a net worth of Rs 100 crore.

In May, the RBI issued guidelines to digital wallet companies who wish to surrender their licences. The RBI mandated wallet companies need to send notices  to customers which indicates that customers can spend the amount in wallets or opt for a refund to their bank accounts within a time period.

Gupta added that the combined wallet users base will now stand at 30 million. PayU has about 10 million wallet users while Citrus has 20 million. PayU used to run a wallet called PayU money in association with RBL Bank.

This puts PayUs wallet in striking distance to overtake MobiKwik as the second largest wallet player in the country. MobiKwik has 32 million wallet customers while FreeCharge has more than 30 million wallet users.

Payment gateways will continue to exist separately

Gupta added that the payment gateways of PayU and Citrus will continue to exist separately for the next one year. “Right now there is only 15% overlap between the merchant base for PayU and Citrus .. so they will have choice on what they want to do whether they want to stick with PayU’s payment gateway or Citrus’s gateway,” Gupta said.

The combined entity has over 200,000 merchants Gupta said and 120,000 belong to PayU while 11,000 belong to Citrus.

Other products

– In June, PayU also launched its POS terminal. Last month it said that it has more than 5,000 terminals and is adding 1,350 machines by the end of the month.

– In July, Citrus Pay launched Sellfie for contextual payments. Users can now sell and collect payments directly on social media sites, messengers and other online channels through this app.

– Citrus Pay also has Lazy Pay and which will allow the company to become an underwriter of transactions and charge consumers, on a fortnightly basis.

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© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ