Flipkart prepaid wallet only for digital goods from now [Update]

flipkartThe prepaid wallet on ecommerce site can now be used only to buy digital goods. Until now, you could use the wallet to buy anything including physical goods from the site. Flipkart had launched the prepaid wallet in 2011 to make checkouts faster.

According to a mailer sent by the Bangalore based company to its regular wallet users – new top ups into the wallet can be used only on Flipkart’s digital store Flyte. The digital store sells music and ebooks.

We have checked the Flipkart Wallet feature on its website, however it does not carry information about any such changes. Flipkart Wallet works on a prepaid credit mechanism, where users can top up their wallet with up to Rs. 10,000 by using plastic card based payment options like credit card, debit card, and Internet banking.

“In case your Flipkart’s Wallet has unused topped-up balance from earlier, you may continue to use it to make purchases across all categories till it is exhausted,” says the Flipkart mailer.

———

Official Update: Flipkart has discontinued prepaid wallet owing to following reasons:

– This is a temporary change until we get the required government approvals to run a marketplace wide wallet

– The Flyte wallet will continue as a closed loop wallet only for digital purchases

– Running a single seller wallet on the marketplace would have led to a bad customer experience – given our aggressive plans to scale up the number of sellers in the future.

———

Besides Flipkart, ecommerce players like Infibeam, MobiKwik Balance and One97 owned PayTM have launched semi-closed wallet service that allows users to make a purchase on the site without having to use a credit/debit card or net banking.

Recommended Read: The making of Flipkart’s saved card feature