Home / Companies / SBI ties up with PayPal, Snapdeal

Kolkata: State Bank of India on Thursday entered into two collaborations—one with digital payments company PayPal and another with e-commerce firm Snapdeal—to augment business by leveraging digital channels.

The tie-up with PayPal—a division of the eBay Inc. of the US—was aimed at providing hassle-free banking services to India’s exporters and importers, said B. Sriram, managing director and group executive (national banking) at State Bank of India.

PayPal’s digital payment solutions will allow the bank’s small and medium enterprise customers to access overseas markets and also enable SBI’s debit card holders to buy products online from abroad, he said.

The product will also help non-resident Indians remit money easily to the government’s social projects such as the clean Ganga movement, he said.

The collaboration will help give impetus to the ‘Make in India’ initiative by enabling global transactions, said Vikram Narayan, managing director and country manager (India), PayPal.

Following a tie-up with the previous day, SBI entered into a similar agreement with on Thursday for financing the sellers on the e-commerce platform.

Snapdeal planned to increase its seller base to 1 million from 150,000 at present, said Kunal Bahl, its chief executive officer.

“We would like to leverage this customer base to increase lending to the small and medium enterprises at attractive rates and little collateral," said Arundhati Bhattacharya, chairperson of SBI.

The bank had a small and medium enterprises (SMEs) loan book of 1.7 trillion as of December 2014. The arrangement with Snapdeal will also help reduce defaults by SMEs, which in turn would benefit by accessing organised online markets for their products, Bhattacharya said.

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