The companies say the partnership will accelerate digital transformation in semi-urban and rural India while bringing more people into formal banking channels.
Fintech major Paytm Paytm and HDFC Bank on Monday announced that they have entered into a strategic partnership. The partnership is aimed 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 has 333 million users and 21 million merchants onboard.
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 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.
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.
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.
Paytm and HDFC Bank are coming together for two broad POS offerings:
- 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.
- Paytm and HDFC Bank will jointly launch a co-branded POS product in the retail segment, which Paytm will have the option to offer to its own customer base.
Paytm is likely to hit the market with its ₹16,600 crore IPO at the earliest and very likely by October. The company had filed draft papers for its initial share sale with the market regulator SEBI on July 15.
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