Η Xiaomi India has proceeded to discreetly end its financial services offering in India
Xiaomi India's financial services target a trillion dollar market, but now the company has moved to discontinue the services provided by the apps Mi Pay and Mi Credit by Google Play Store, along with its own app store in India.
The Pay me, is a Xiaomi app that allows users to make payment transactions over the network UPI in the country of India, but Mi Pay is no longer included in the certified ones UPI applications from NPCI.
The sudden closure of the financial services operation is a major setback for Xiaomi India, which is currently the country's smartphone market leader and has been continuing to expand financial services in India to bring in more revenue. It is known that Xiaomi sells its devices in India with minimal profit margins, so the financial services it offered in the country was the best way to cover the revenue gap it had from the sales of its products.
In March of 2019, Xiaomi introduced the Mi Pay in India and according to recent statistics, the Mi Pay app has so far this year, over 20 million active users in the country. The company also developed later that year and the Mi Credit , an app that enabled consumers in India, to get loans from $70 to $1.400 with low interest rates. The company looked at call logs, transaction abuses and other information to figure out whether users were creditworthy for borrowing.
In this way, many loans were given through Xiaomi subsidiaries. Him August of 2018, the then CEO of Xiaomi India, Manu Jain, announced to the Indian media, that the company wanted to become one of the largest fintech companies in the country of India, through the applications Mi Credit and Mi Pay, adding that after China, Mi Credit's biggest market was India.
Recently, the Xiaomi India was targeted by the government of India, resulting in federal financial crime agency of India (India's equivalent SDOE), to proceed to compulsory seizure 55,51 billion rupees (~$682 million), claiming that an investigation it conducted found that Xiaomi had made illegal remittances to foreign entities passing them off as royalty payments.
Xiaomi stopped offering financial services in the country for undisclosed reasons, but the move came at the same time as India's central bank proposed tighter lending rules. These new rules would limit access to the information lenders can access from a customer's phone, making it impossible for companies to glean more information about their customers' creditworthiness.
Η Xiaomi proceeded in a modest statement stating that:
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