E-commerce giant Flipkart along with Mastercard, PayU and Nabard Bank will hold a 30 percent stake in Tata-promoted Ferbine.
The aim is to set up a national payments infrastructure rivalling National Payments Corp of India.
This agglomeration will vie with consortiums led by Reliance Group and global e-commerce giant Amazon.
Moreover, the goal is to get licences from the Reserve Bank of India for creating New Umbrella Entities.
Further, Tata Group will own 40% in Ferbine while Airtel Digital, Mastercard and Nabard will hold 10% each.
Meanwhile, Fipkart, through its subsidiary FlipPay, and Naspers-backed PayU will own about 5% each in the Tata entity.
However, HDFC Bank and Kotak Mahindra Bank will hold 9.99% each in Ferbine.
Ferbine plans to become a pan-India umbrella entity for retail payments, incorporated on January 18, 2021.
Digital payments grew at an annual rate of 55% in the past five years in the country according to statistics.
Tata Group chairman had announced plans to develop a super app under Tata Digital. This was as a part of its larger e-commerce and financial services play.
In fact, it will follow an open architecture model offering plethora of e-commerce choices and financial products among others.
The expertise of Flipkart, HDFC Bank and Mastercard will help in the setting up of this venture.
Also, the idea is to collaborate strategically and build a network that can further lead to digital payments growth in India.
Moving forward, RBI has extended the deadline for submitting applications for NUE licences to March 31.
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