India’s Delivery App Zomato To Launch Payments Service

Food delivery app Zomato is planning to debut a new FinTech experiment called Zomato Payments, VCCircle reported.

Zomato, in a regulatory filing this week, said the payments feature would incorporate payment aggregator and gateway services, the report stated.

It would handle all kinds of electronic and virtual payment systems like eWallets, mobile wallets, cash cards and others, according to the report. There would be a payment and settlement system along with prepaid and post-paid tools with the inclusion of closed or semi-closed payment instruments along with a direct debit facility on mobile phones.

And there would be mobile-based solutions allowing users to pay for goods and services or utility bills, the report stated.

The move sees Zomato competing against payments giants from the global stage, such as Google Pay, PhonePe and Mobikwik and Paytm, according to the report.

Digital payments have seen a significant uptick since the pandemic began.

PYMNTS reported last month that Zomato saw an impressive stock market debut, surging 82.8 percent on its first day in pre-open trade. The company’s valuation at the time hit $12 billion.

Read more: Zomato Shares Skyrocket In India’s Stock Market Debut

Research firm RedSeer said the Indian food delivery market is worth around $4.2 billion. Zomato is one of the big names in the field, but it also competes with others like Swiggy and Amazon’s food delivery unit.

Zomato, founded in 2008 by Deepinder Goyal and Pankaj Chaddah, partners with around 390,000 restaurants. Goyal said the company has “lived through many ups and downs — something not every company has the privilege of living long enough to do.”

“I have made many decisions which have been good for the company, while some have caused our stakeholders a lot of heartburn,” he said. “That said, we have found ourselves managing times of crisis on different occasions in much the same way — impatiently staying focused on the long term, executing relentlessly, and committing ourselves to doing the very best we can do today.”