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Muvin shuts down its operations

Monday 5 February 2024 11:44 CET | News

Youth-focused neobank Muvin has announced its decision to shut down its operations, as a result of the RBI direction which forbade UPI in a co-branding deal. 

Following this announcement, any available balance is expected to be migrated to the `Issuer Livquik` application, while the company will also provide customers and users with the next steps required to access their balance and funds. 

The startup’s decision to shut down its card programme came as a result of the Reserve Bank of India (RBI)’s directive towards businesses and companies, which forbade them from using a Unified Payments Interface (UPI) in a co-branding arrangement. 

 

Youth-focused neobank Muvin has announced its decision to shut down its operations, as a result of the RBI direction which forbade UPI in a co-branding deal.

More information on the announcement

Muvin represents a neobank that focuses on providing young individuals with the possibility to access financial education opportunities, as well as efficient and easy-to-use payment solutions. The company aimed to provide teenagers with multiple capabilities and features, having a set priority on optimising the overall financial well-being of the upcoming generation through experiential learning. 

At the same time, Muvin designs multiple lessons for young customers, aiming to guide them through the landscape of finance, while also exploring and explaining concepts with a simplified and `bite-sized` approach. All of its services were enabled with the parents’ approval and supervision, focusing on making the process of using payment methods safer and more efficient for clients. At the same time, parents and legal guardians were enabled to transfer allowance directly to the child’s wallet, allowing them to use it to make transactions online or offline by leveraging their contactless Muvin card. 

The Muvin mobile application was developed in order to provide young adults and teens with the possibility to benefit from prepaid cards. At the same time, the app was not made available on the Google Play Store, according to Entrackr. 

Before closing down its operations, the company announced the raise of USD 3 million in a pre-Series A round in January of 2022, used through the process of developing its suite of products and services, as well as doubling its team size from 25 employees to the following year. 

Alongside Muvin, the directive launched by the Reserve Bank of India also forced DreamX (Dream11), Akudo, Fampay, and CheqUPI to discontinue their UPI solutions, as they did not hold a PPI license at the moment the regulation was released. 



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Keywords: regulation, banking, mobile banking, digital banking, online banking, financial services, financial institutions
Categories: Banking & Fintech
Companies: Muvin, Reserve Bank of India
Countries: India
This article is part of category

Banking & Fintech

Muvin

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Reserve Bank of India

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