Gurgaon-based online restaurant discovery and food delivery firm Zomato is in process of launching its very own digital payments and mobile wallet solution in order to prevent its users going out of its ecosystem while making payments online, reported Business Standard.

Zomato, which currently has digital wallets like PayTM and Mobikwik in its mode of payments, is building its own digital wallet since early of this year when it raised funding from Alibaba's Ant Financial, said the report citing sources.

The company is likely to roll out its digital payments solution in the next two months.

According to the report, the primary reason Zomato is entering into the payments segment is to increase customer retention and predictability of orders and spends.

Initially, Zomato will launch its payment service as a captive wallet service, which is for adding money and spending on ordering food and dine-in over the Zomato app. And, as its adoption rises the company will eventually made the wallet operable outside Zomato app for making payments to other services.

Zomato may give exclusive offers and cash-backs through its own wallet, integrated with its loyalty programmes like Zomato Gold and Zomato Piggybank. The company could also look at tapping its large base of partners to drive in-restaurant digital payments via its own app, extending benefits it offers for online orders to offline ones as well, the Business Standard report further added.

With this, Zomato will follow the likes of Ola, Flipkart and Amazon, which too have their own payment arm Ola Money, PhonePe and Amazon Pay respectively.

Zomato's biggest competitor in India, Swiggy, has already built its own captive wallet Swiggy Money.

Moreover, it will also create a tug of war situation in Indian digital payment space with almost every dotcom firm having its own digital wallet beside having local payment players like PayTM and Mobikwik. Moreover, global companies like Amazon Pay, Facebook-owned WhatsApp, Google Pay and most recently Caller ID app TrueCaller also jumping into the online payment services will turn the competition more havoc.

The online payment competition is so dramatic in India that within just a couple of weeks both PayTm and Amazon have infused massive money in to their respective payment businesses. While Paytm raised $300 million from billionaire investor Warren Buffett's Berkshire Hathaway Inc, Amazon too has invested about $80 million into its Indian payment unit of Amazon Pay.

Post a Comment

Previous Post Next Post
Like this content? Sign up for our daily newsletter to get latest updates.