Mobile payments company Vodafone M-Pesa has applied for an extension on its prepaid payment instrument license while it explores merging with an associate or third party company.
Vodafone M-Pesa, which is wholly owned by India’s Vodafone Idea, is seeking an additional extension of its license from the Reserve Bank of India.
The company will be required to pursue a merger due to regulations preventing one entity from having a payments banking business and prepaid payments business under separate entities.
Due to the merger between Vodafone India and Idea Cellular, the combined Vodafone Idea currently has a 100% stake in Vodafone M-Pesa as well as a 49% shareholding in the Aditya Birla Idea Payments Bank Limited.
The company has already negotiated multiple extensions to its prepaid payment instruments, but only on a temporary basis as the company pursues a solution to gain compliance with the regulations.