Nokia will close down Nokia Money, a financial service it runs in India, as it continues to narrow its focus on its mobile phone business and location-based services.
"The mobile financial services business is not core to Nokia so we plan to exit the business," said a spokesman for the company.
After regional launches, Nokia opened the India-wide service only late last year and was planning to expand it into several other emerging markets.
Nokia had a tie-up with private sector lender YES Bank and state-run Union Bank of India for the mobile financial services business.
"They are exploring options with us for a structured exit from the business and the services will continue to operate while planning continues," a YES spokesman told Reuters.
Union Bank could not be reached for a comment. Financial services are seen as one of the major business opportunities in the wireless industry but so far have become a big business only in Kenya and the Philippines, as tight regulations and the lack of a business model have restricted take-up elsewhere. Telecom operators, banks, credit card companies and technology firms like Nokia have been fighting to get a piece of the potentially lucrative business
