MUMBAI, Aug 22 (The CONNECT) - Paytm and HDFC Bank have entered into a strategic partnership to drive innovative digital solutions for financial transformation in the country by combining their strengths in the banking, lending, and digital payments space.
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.
Paytm is India’s largest payments platform with 333 million users and 21 million merchants onboard, as per RedSeer study.
Bhavesh Gupta, CEO, Paytm Lending said, “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. This partnership will further strengthen financial services ecosystem by bringing together our technology and digital solutions and HDFC Bank’s retail and credit prowess.”
With over 50 million debit and credit card customers, HDFC Bank is a strong player in the payments’ ecosystem. It has a footprint of over two million merchant acceptance points and 48 per cent 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 per cent.
Renu Satti, COO, Offline Payments, said, “Paytm’s reach in the offline & online merchant space and HDFC Bank’s retail influence, will aim for dynamic growth in the payments space. Paytm has a history of launching innovative products that have made way for the adoption of retail payments among various merchant partners. This partnership aims to bring innovative products focusing on affordability.”
Through this partnership, Paytm and 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.
The first leg of the partnership will include Payment Gateway and POS Solutions for Indian merchant partners.
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.
Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank said,
“As India’s largest issuing and acquiring bank, we have always endeavoured to personalise our offerings to customers-consumers, businesses and corporate houses. Through this partnership, we will also be jointly delivering enhanced SmartHub solutions to the market. 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”.
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.