Nokia started its financial services in India with the collaboration of Yes Bank and Union Bank in 2010. There are around 1.2 million consumers who is using Nokia mobile wallet services, while around 0.2 million subscribers are leveraging of Nokia Money services in India. “Nokia Money” is offering services such as paying of utility and bills, recharging of pre-paid products, balance inquiry, and other more services across the country. Reuters has reportedly stated that Nokia is planning to shut down its mobile payment services “Nokia Money” in India. The company is now trying to pay more attention on its handset business and services related to locations. However, the company’s spokesperson said, “The mobile financial services business is not core to Nokia, so we plan to exit the business.” But, the statement of the company’s spokesperson contradicts to the bolsters structure of “Nokia Money” establishment in India. Last year, the company clearly intended to roll out its financial business to some other emerging market, now, it is denying to contend the reality. I don’t know why the company is pushing its Nokia Money services on the track for further expansion in India.
In 2009, Nokia Money services were introduced in India by Nokia–which allows users to send money to relatives, friends, merchants, and service oriented companies just by using their mobile phone numbers. The service was showcased by the company at Nokia World conference in early September of 2009, however, it was roll out to regional market in 2010.
Nokia Money services were powered by “Obopay”—in which Nokia was dominant investor. Nokia Money was succeeded to lure a huge number of folks in emerging markets. The services made runaway success around, users have had pre-paid SIM rather than Bank account. The services played vital role especially in rural regions where good banking facilities were not available and “Nokia Money” emerged as an alternative media to pay for tangible and non-tangible need without using cash.
The demand of mobile payment market is increasing with dizzying pace worldwide. Credit card companies, mobile operators, and even techno- giant companies such as Google and PayPal are also interested to deploy mobile payment system. As the Smartphone has become prevalent gadget worldwide, it’s expected that the mobile payment market could potentially be a big business in upcoming years. A data from GSMA reveals that 130 deployment are currently providing mobile money services worldwide and 93 are planning to deploy the services later this year or next year.
There’s a big question why the company has planned to debar the further expansion of “Nokia Money”’ in India? Stephen Elop hold the helm of Nokia last year, and thereafter, he steered the sail according to his way. Stephen’s took first decision after being CEO was to discontinue Nokia’s own Symbian OS platform and started to work with Microsoft Windows Phone. I think “Nokia money” is not the only service which has been threatened by new CEO, but the company has already announced earlier this month closing up its OVi share services– where users contents were hosted by the company online. Presently, the company has only spared to its “Nokia Life”, which provides information related to agriculture, healthcare, education, and entertainment fro emerging markets.
It’s not the way for proper running of Smartphone to impasse all the services and business of the company. However, the company’s CEO decision seems crap. Anyway, the company has planned to launch its Windows 8 based Tablet in Q4 of this year, and the company might become Windows largest hardware manufacturer.