Nokia to drop out of the mobile money business.

WorldWide Tech & Science. Francisco De Jesús.

Nokia to drop out of the mobile money business

Nokia is "exploring options for a structured exit from the mobile financial services business" including its own brand Nokia Money service, the company says in a statement. As part of the withdrawal, the company is to close its flagship mobile money service in India as the handset manufacturer focuses on its core business. The company has announced plans to shelve Nokia Money only three months after launching it across India.

 Previously the service was launched regionally in various parts of the country.  Nokia Money is a basic service that enables users to make payments for items such as utility bills, pre-paid top-ups, insurance premiums and tickets. The company was even planning to expand Nokia Money to other emerging markets. Instead it has chosen to exit the mobile money business to concentrate on the revamp of its core handset business.

In addition to Nokia Money, the company also offers two more sophisticated mobile money services in India in partnership with local banks Yes Bank and Union Bank.  According to The Hindu Business Line, the two services may continue as the banking partners might take over their running. The newspaper says Nokia is looking for a replacement who would adopt its role in the two joint ventures. 

 Nokia's statement, who does not refer specifically to India, but says services will continue to operate "as it works with its banking, market and technology partners....to plan future options in accordance with all customer and regulatory requirements".

The three services in India (Nokia Money/Yes Bank/Union Bank) have a total of 1.2 million customers, says The Hindu. Of those about 200,000 are Nokia Money customers, says the newspaper.  They will be sent advice starting March 15 to use up the funds in their accounts, it says. The service will then continue for 3-4 months giving sufficient time for subscribers to spend the funds in their accounts.

The two services with Yes Bank and Union Bank offer a greater range of services than Nokia Money including P2P cash transfer and withdrawals. In contrast Nokia Money is essentially a pre-paid wallet which is topped up and then used to make payments.