Sunday, July 21, 2024
- Advertisement -

    Latest Posts

    Zomato Pulls Plug on Payment Aggregator Plans, Citing Lack of Competitive Advantage

    What’s the news: Zomato surrendered its payment aggregator license and withdrew its application to operate as the issuer of pre-paid payment instruments, as per a stock exchange filing on May 13, 2024. The decision was made following a meeting of the board of directors of ZPPL, a wholly owned subsidiary of Zomato Limited.

    The company had first submitted a disclosure for the payments license in August 2021 and received the same in January 2024. It had applied to work as the issuer of pre-paid payment instruments in November 11, 2021. However, in its latest filings, the entity said it did not see a competitive advantage in this investment any longer.

    “At Zomato, we do not see ourselves having a significant competitive advantage against the incumbents in the payments space and hence we don’t foresee a business in payments space as commercially viable for us, at this stage,” said Zomato in its filings, adding that the real impact of the developments in the payments sector became more apparent once the company started setting up the structure to commence the operations.

    The company recognised an impairment loss of INR 39 crores on its investment in ZPPL. However, it stated that there is no material impact on the revenue/ operations of the company on account of the voluntary surrender and withdrawal.

    Also Read:

    STAY ON TOP OF TECH NEWS: Our daily newsletter with the top story of the day from MediaNama, delivered to your inbox before 9 AM. Click here to sign up today!


    The post Zomato Pulls Plug on Payment Aggregator Plans, Citing Lack of Competitive Advantage appeared first on MediaNama.

    Latest Posts

    - Advertisement -

    Don't Miss

    Stay in touch

    To be updated with all the latest news, offers and special announcements.