India’s largest private sector bank, HDFC Bank and Paytm have entered into a strategic partnership to provide innovative products across digital payments, lending and POS solutions.
The fusion of HDFC Bank’s network, products and credit appraisal capabilities and Patym’s technological platform will accelerate digital transformation in semi-urban and rural India while bringing more people into formal banking channels.
With over 50 million card customers (both credit and debit cards) HDFC Bank is a strong player in the payments ecosystem with leadership in both credit card issuing and acquiring businesses.
It has a footprint of over two million merchant acceptance points and 48% business market share on merchant acquiring volume. It remains the number one credit card issuer in the country with a spend share of over 27%.
Paytm is India’s leading digital ecosystem for consumers and merchants, and offers payment services, commerce and cloud services, and financial services to 333 million consumers and over 21 million merchants, as on March 31, 2021.
“We believe that this is the start of a great partnership and the cumulative strength of both HDFC Bank and Paytm will help us strengthen our respective leadership positions,” said Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank.
“Through this partnership, we will also be jointly delivering enhanced SmartHub solutions to the market.”
HDFC Bank SmartHub solutions is an integrated platform offering merchants a one-stop solution shop for all their business needs-payments, banking, lending and segment-specific business solutions.
“We are extremely delighted to partner with HDFC Bank, which has been one of the leaders in the retail lending space in our country for the last two decades. Together we aim to provide innovative digital lending & payment solutions for consumers and merchants alike,” said Bhavesh Gupta, CEO, Paytm Lending.
Through this partnership, Paytm & HDFC Bank will build comprehensive solutions across Payment Gateway, POS Machines and Credit Products including Paytm Postpaid which is Buy Now Pay Later (BNPL) solution, Eazy EMI and Flexi Pay, and more.
HDFC Bank will drive merchant partnerships across India, to whom Paytm will offer its existing range of Android POS devices. Through the partnership, HDFC Bank’s salespersons will start selling Paytm’s payment solutions in the market. HDFC Bank will be the payment partner, while Paytm will be the distribution and software partner.
The partnership between Paytm and HDFC Bank will aim to empower the new businesses, which have recently ventured online, and enable them to scale up further.