Nokia is planning to quit the mobile financial services market in India just two years after opening for business, a spokesman says.
The firm is speaking with its local mobile finance partners, staff and agents to plan its next steps, the staffer told Telecoms Europe.net, adding that the move will also include its own-brand Nokia Money services in the market.
“As a result of Nokia’s evolving strategy and business environment, we are exploring options for a structured exit from the Mobile Financial Services business,” the spokesman said, confirming local reports the firm is set to quit the sector.
The spokesman says services “will continue to operate,” while the firm discusses its plans with local joint venture partners YES Bank and Union Bank, which have roughly a million users between them. Those discussions will cover “all customer and regulatory requirements,” he adds.
Local newspaper the Hindu Business Line broke the news over the weekend, reporting the vendor is likely to soon start telling its 200,000 Nokia Money subscribers to spend the remaining funds in their account within the next four months. The firm is also preparing to hand back its financial operating license to India’s reserve bank, the news outlet states.
Nokia commenced mobile money services in India in 2010 in partnership with the two local banks. Hindu Business Line speculates the pair may take over the respective branded mobile money services, or find a new vendor partner.
Tavess Research has forecast that the nation will house 100 million mobile money subscribers by 2015, around 10% of the total market in emerging nations in the Middle East, Asia and Africa.
Boston Consulting Group has previously predicted India’s m-commerce market will be worth $350 billion (€266 billion) by 2015.