Zomato has incorporated a new subsidiary to handle digital payments and payment gateway services. Here is all you need to know.
Zomato has incorporated a wholly-owned subsidiary to handle digital payments and payment gateway services after going public last month. The new subsidiary is called Zomato Payments Private Limited (ZPPL).
ZPPL has been incorporated on August 4, 2021, according to a regulatory filing by the online food delivery major. The new payments have been incorporated with an authorised share capital of Rs 20 crore, divided into two crore equity shares of Rs 10 each.
The new subsidiary has been incorporated with an initial subscription of 10,000 equity shares of Rs 10 each, aggregating to Rs 1 lakh.
Zomato also said that the regulatory filing that the subsidiary has been formed in accordance with the Reserve Bank of India (RBI) rules to provide payment aggregator and payment gateway services.
ALL ABOUT ZOMATO PAYMENTS
Zomato Payments will offer several services related to electronic and virtual payment systems, e-wallets, mobile wallets, cash cards to consumers, said the company in the regulatory filing.
The new subsidiary will also set up a payment and settlement system, payment gateway services, prepaid and post-paid instruments and payment systems including closed and semi-closed payment instruments, direct debit facility on mobile phones.
It will also provide solutions for payment for all goods and services and utility bills through mobile phone, etc.
With the incorporation of the new payment subsidiary, Zomato plans to compete with other players in the digital payments space. Zomato Payments will be competing against major digital payments firms including Paytm, PhonePe, Google Pay, MobiKwik and more.
It may be noted that the digital payments segment has seen rapid growth over the past year due to higher digital adoption after the Covid-19 pandemic.