M-payments firm Luup dumps customers

M-payments firm Luup dumps customers

Mobile payments outfit Luup is contacting all of its customers in the UK, Norway and Germany and asking them to close down their accounts.

In a message on its Web site, the company says it is no longer offering services directly to customers and merchants. Instead, it will change its business model and look to work with banks to offer the platform.

Established as Contopronto in 2000, the company began offering m-payments services in Norway in 2005 before entering the UK and German markets the following year. In Germany the service is now called Luupo.

The system was designed to be independent of mobile phone operators, allowing consumers to use their handsets to send money and manage their accounts through a mobile wallet application or via SMS text message.

But with reports in Germany suggesting take-up has been disappointing, the company has now sent subscribers e-mails and text messages informing them that the service will no longer be available.

Customers have until 8 April to transfer their credit to their bank account or donate it to Amnesty International, the Red Cross or Save the Children.

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