Xiaomi is without any buzz shutting down its Mi Financial Services business in India. The decision will affect services such as Mi Credit and Mi Pay. The decision is part of strategic assessment activity and places a greater emphasis on the core business services in the country. The company has already removed the Mi Pay and Credit apps from the Google Play Store and its own App Store in India.
Xiaomi Mi Pay and Mi Credit are now history
To those unaware, Xiaomi Mi Pay has been available in India since 2019. It has more than 20 million users in the country. These users will need to find other alternatives. The payments app is no longer on the list of recognized UPI apps by NPCI. That’s a body that facilitates UPI payments and other services in the country.
When it comes to the Xiaomi Mi Credit app, lent customers between $70 to $1,400 at comparatively low-interest rates. The app accessed users’ texts and call logs to look for transaction information and other details to determine whether they deserve credit. If they get a “green light” then, the company grants loans to them through partners within minutes. Of course, accessing user data is not well-seen nowadays. It lit a lot of red alerts.
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According to a Xiaomi spokesperson: “As part of the annual strategic assessment activity, and as a response to enhanced focus on our core business services, we’re closing the Mi Financial Services”. In a short span of 4 years, we were able to connect and support thousands of customers. Now, we are working with our partners and supporting our consumers during this process”.
The brand will focus on other segments
Worth noting that earlier this year, India’s federal financial crime agency froze $676 million worth of Xiaomi’s assets. The reason was that the company was making illegal remittances via royalty payments to foreign entities. Xiaomi denies these allegations. Moreover, it says that these actions “halted” its operations in its key Indian market.
Xiaomi is the leader of the Indian market when it comes to smartphone sales. The company is always trying to become more important in the market, but the closure of its financial services certainly means some steps back in the company’s goals. For now, we expect Xiaomi to keep focusing on smartphones and other electronics.