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Tata Digital sets up 100% arm for payments play
January 19, 2022
Tata Digital Ltd. has floated a wholly owned subsidiary, Tata Payments Ltd. that will assume control over all payment related assets of the Tata Group firm.
The move is viewed as a precursor to the salt-to-software conglomerate entering the payments business in a big way under the Tata Pay banner. Just days ago, Tata Digital set up Tata Fintech, a financial service marketplace.
The leading group of Tata Digital has approved transfer of payment related assets for Tata Payments through “an itemized sale transaction” at a valuation of about ₹50.37 crore, according to most recent regulatory disclosures made to the Registrar of Companies (RoC).
Tata Digital, which will be rolling out the group’s e-commerce platform through a super application, will incorporate Tata Pay as a payments gateway for consumers. Tata Pay may likewise be offered to other organizations as a digital payments gateway.
“Tata payment business is in the nascent stages. It’s a separation from Tata Digital indicates that Tata Group harbors the intent of dominating not only e-commerce as well as the payments space,” said business intelligence firm AltInfo’s founder Mohit Yadav.
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