Mobile payment firm Fino Paytech, the promoter of Fino Payments Bank, has invested in Indian fintech firm CityCash. Financial terms of the deal were not revealed.
Under the partnership, the two parties will develop a new payments ecosystem. Fino will serve as the issuance and settlement institution of the prepaid payment tool.
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The alliance will leverage CityCash’s NFC-based cashless payments and micro-payment merchant acquisition technology.
The aim is to support India’s public transport payment and retail payments through co-branded Fino and CityCash cards.
Fino Paytech secured the in-principle nod from the Reserve Bank of India to launch payment bank in August 2015 and obtained the final licence in April 2017.
Payment banks can take deposits, offer internet banking, enable fund transfers, and sell insurance and mutual funds. However, these entities cannot issue credit cards or lend to customers.
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By GlobalDataLast January, the firm raised INR4bn ($56.7m) in capital from a group of investors. They include Bharat Petroleum, which purchased a 21% holding in Fino for INR2.51bn ($35.6m).
ICICI Prudential Life Insurance and ICICI Lombard General were among the other investors.
