Nokia will close down its mobile banking service in India, the only place it was ever launched, in an effort to focus on its core businesses, reports say, despite earlier plans to expand the service into several other emerging markets.
In its report Monday, Reuters quoted a company spokesperson who said: "The mobile financial services business is not core to Nokia so we plan to exit the business."
It noted that while there were opportunities in financial services in the wireless industry, the service has only become a big business only in Kenya and the Philippines. This was partly because of tight regulations and the lack of a business model have restricted its uptake elsewhere.
Nokia Money was aimed at providing access to financial services to people who had a mobile phone but not a bank account.
British news site The Register noted that Nokia's service converted the company's retailers into cash points, and relied on the company's extensive infrastructure to move cash around cheaply and quickly. The service could be accessed from feature phones through SMS, or with a smartphone app.
Nokia's exit comes amid increasing competition from other players such as telecom operators, and credit card companies.
The Finnish company has been on a revamp of its operations under CEO Stephen Elop, who was hired in 2010 to revive its fortunes.