The company, however, did not disclose the financial details of the deal.
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.
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.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)