After listing about two weeks ago, food-tech giant Zomato is now entering fintech with a digital payments entity called Zomato Payments.
In a regulatory filing on August 4, the Deepinder Goyal-led company announced the incorporation of Zompany Payments Private Limited (ZPPL) as its wholly owned subsidiary. Zomato said ZPPL would provide payment aggregator and gateway services.
The entity, Zomato said, would handle all types of electronic and virtual payment systems, e-wallets, mobile-wallets, cash cards for consumers. It would set up a payment and settlement system and offer payment gateway services, prepaid and post-paid payment instruments, including closed or semi-closed payment instruments and direct debit facility on mobile phones.
The company, incorporated with an initial subscription of 10,000 equity shares of Rs 10, would also offer mobile-based solutions to let customers pay for payment for goods and services as well as utility bills. The authorized capital of the company is Rs 20 crore, divided into 2 crore shares of Rs 10 each.
With this move, Zomato will be competing directly against the giants of Indian fintech space, including Google Pay, PhonePe, and IPO-bound Mobikwik and Paytm.
Since the pandemic, the sector has seen significant growth as users shifted towards digital transactions to avoid contact and carry out transactions remotely.
In July 2021 alone, NPCI’s UPI architecture, which enables bank-to-bank payments across third party apps like Paytm, saw over 3.2 billion transactions valuing over Rs 6 lakh crore.