1 min read.Updated: 04 Aug 2021, 11:03 PM ISTLivemint
Zomato Payments Private Limited (ZPPL) has been incorporated with an authorised share capital of ₹20 crore, divided into two crore equity shares of ₹10 each
Zomato has incorporated a wholly-owned subsidiary, Zomato Payments Private Limited, to handle payments and technology services. The company has been incorporated in August 4, 2021, the food delivery aggregator stated in a regulatory filing on Wednesday.
Zomato Payments Private Limited (ZPPL) has been incorporated with an authorised share capital of ₹20 crore, divided into two crore equity shares of ₹10 each. The Zomato subsidiary has been incorporated with an initial subscription of 10,000 equity shares of ₹10 each, aggregating to ₹1 lakh.
The newly-incorporated subsidiary belongs to under payment and technology services industry, Zomato said in the filing.
Zomato Payments has been incorporated "to carry on the business of providing, payment aggregator services and payment gateway services in accordance with the Reserve Bank of India (RBI) rules and regulations, amendments therein or any new rules/ acts/ regulations prescribed by the RBI".
The firm will also handle all types of electronic and virtual payment systems services, e-wallets, mobile wallets, cash card to consumers. It would also set up a payment and settlement system, payment gateway services, prepaid and post-paid payment instruments, and payment systems including closed or semi-closed systems payment instruments, direct debit facility on mobile phones.
Zomato Payments will also provide solutions for payment for all goods and services and utility bills through mobile phone, etc.
With this move, Zomato has ventured into the digital payments space days after registering a successful IPO. This pits the Deepinder Goyal-led company against pioneers and behemoths in the industry, including Paytm, PhonePe, Google Pay, MobiKwik and many more.
The segment has seen immense growth over the last year as people were confined to their homes on account of Covid-19 lockdown. People have also migrated to digital payments to cut down physical contact in order to protect against the virus. Zomato might be looking to capitalise on rising popularity of digital transactions.