New Delhi, January 5: India’s affordable online payment gateway provider PayUMoney is soon going to shut its wallet services by January 31, 2018. As per reports, PayUMoney now plans to focus on its credit-based product LazyPay which will help it gain more consumers and business in the years to come. The payment gateway has urged users to transfer the wallet amounts back into their bank accounts. Reports further inform that the company will be launching a new product and users will be able to use saved cards on all websites and apps.

The Naspers-backed payments major had bought out Citrus Pay in 2016. As per reports, PayU will continue to offer its wallet services through Citrus.  When users open the PayUmoney app, it redirects users to the website. The website further gives instructions on how to send unspent wallet balances. At present, the wallet does not allow any addition of money as well.

Confirming the development, Citrus Pay co-founder and PayU India MD Jitendra Gupta was quoted by TOI saying, "We will keep the wallet live as long as we see steady use cases but the focus is going to be push credit through LazyPay”. He further added saying that PayU is also slated to bring German credit startup Kreditech to India next financial year.

The move comes in the backdrop of the new wallet guidelines from the RBI. The RBI put a condition on interoperability wallet companies that they have to have full KYC. It mandated higher net worth requirements, increased KYC and linking to Aadhaar, reduction in the amount of money a wallet can hold.

In May 2016, the RBI had issued guidelines to digital wallet companies who wish to surrender their licences. The Apex Bank mandated all the wallet companies to send notices to customers which indicate that customers can spend the amount in wallets or opt for a refund to their bank accounts within a time period.

(The above story first appeared on LatestLY on Jan 05, 2018 10:42 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).