Earlier this month, Ukrainian clients of PayU, an international PSP which belongs to Naspers via the Allegro Group, were informed that the company will stop activities in the country in the near future.
While the company explained its decision as “based mainly on an assessment of the current and expected market conditions,” Ukrainian tech publication AIN.UA noted that the operator, which entered the market in 2012, has thus far not succeeded in gaining significant market share.
AIN.UA also suggested that PayU’s development in the country may have been hampered by management turnover, suggested AIN.UA.
Nonetheless, PayU Ukraine will fulfil all its service obligations towards its clients. “Special attention will be paid to employees, merchants, and all external stakeholders,” said Yaroslav Doroshenko, the company’s Country Sales Manager. “We plan to develop the best possible alternative solutions to facilitate switching during the transition period,” he added.
In a letter to clients, PayU explained that payment operations will be handled over to local bank PrivatBank.
Price comparison service Vcene.ua, another Ukrainian project of the Allegro Group, was also shut down in May 2014 due to unsatisfactory business results. The Polish group has been luckier with marketplace Prom.ua, which has continued to expand with two acquisitions announced in recent months.