Fino Paytech invests in fintech startup CityCash

Fino Paytech, the promoter of Fino Payments Bank, Monday said it has invested in Mumbai-based CityCash, operated by Tap Smart Data Information Service.

The company, however, did not disclose the financial details of the deal.

The investment is in line with Fino's strategy of providing banking and payments solutions to emerging India, a statement said.

The two companies will design an ecosystem, wherein Fino will be the issuance and settlement institution of the prepaid payment instrument.

CityCash, on the other hand, will offer NFC-based (near field communication) cashless payments technology and micro-payment merchant acquisition, it added.

Highlighting the opportunity in low-cost NFC-based payment solutions, Fino said customers can use Fino and CityCash co-branded card for retail micro-payments, apart from other transport payments such as for auto and cabs.

It cited the example of the country's public transport system that clocks an annual turnover of about Rs 50,000 crore but 95 per cent of the transactions are in cash.

Some large state and city bus corporations have shown tremendous interest in the Fino and CityCash payment solution and implementation is at advanced stages, the statement said.

As a part of its digital strategy to engage with customers, Fino has already launched a suite of products such as RuPay debit cards, mobile banking app BPay, UPI, net banking and FasTag for toll payments.

These products along with the NFC-based tap and pay solutions would allow Fino to reach out and facilitate digital payments for a wider segment.