Taxi-hailing service Ola is said to have acquired a minority stake in its wallet partner Zipcash Card Services, a semi-closed digital wallet service, reported VCcircle.
Earlier this year in August, Ola – that operates under ANI Technologies, had opened up its closed wallet by partnering with ZipCash to allow third-party merchant to transact using Ola Money. Under this, it extended its alliance with Oyo Rooms, LensKart and Saavn.
ZipCash is a digital wallet services that connects third-party merchants for payments. It had recently received the authorization from the Reserve Bank of India to set up a Payment System and issue Pre-paid instruments under the Payments & Settlement Act, 2007.
Inc42 could not verify the details, and Ola has declined to comment on stake purchase.
It was rumored that Ola. in partnership with Zipcash, would apply for it own semi closed wallet to RBI. With increasing mobile wallet transactions, a lot of companies are getting into wallets. Last month, Snapdeal and Freecharge together launched Freecharge Wallet and got approved by RBI to do so. TinyOwl has tied up with online payment gateway, Citrus, to launch ‘MyWallet’ for easier and faster transactions and Hyderabad-based Abhibus, a bus ticketing portal has launched its own wallet service named ‘Abhicash’.
Ola’s direct competition in the market, SF-based Uber has enabled Paytm which also has a payment bank license from RBI.