Major Fintech Paytm on Monday announced a strategic partnership with India’s largest private sector lender, HDFC Bank, in which the two companies will provide innovative digital solutions for financial transformation by combining forces in the areas of banking, lending and digital payments.
The latest decision comes nearly a week after the Reserve Bank of India (RBI) authorized the private sector lender to start issuing new credit cards.
In a statement, Paytm said that through this partnership, the two financial institutions will build complete solutions for payment gateways, point-of-sale machines and credit products, including Paytm Postpaid, which is a solution of Buy It Now, Pay Later (BNPL), EMI Easy and Flexi Pay, and Suite.
The first stage of the partnership will include a payment gateway and point of sale solutions for Indian merchant partners. Apart from this, the Paytm – HDFC Bank partnership will aim to empower new businesses that have recently ventured online and allow them to grow further.
As per the agreement there will be two point of sale offers –
1. HDFC Bank will develop partnerships with merchants across India, to whom Paytm will offer its existing line of Android POS devices. Through this partnership, HDFC Bank vendors will start selling Paytm payment solutions on the market. HDFC Bank will be the payment partner, while Paytm will be the distribution and software partner.
2. Paytm and HDFC Bank will jointly launch a co-branded point of sale product in the retail segment, which Paytm will offer to its own customers.
“We are extremely pleased to partner with HDFC Bank, which has been one of the leaders in the retail lending industry in our country for the past two decades. Together, we aim to provide innovative digital lending and payment solutions for consumers and merchants. This partnership will further strengthen the financial services ecosystem by bringing together our technology and digital solutions and HDFC bank’s prowess in credit and retail, ”said Bhavesh Gupta, CEO of Paytm Lending in the release.
Parag Rao, Group Head – Payments, Consumer Credit, Digital and IT Banking at HDFC Bank, said, “As India’s largest issuing and acquiring bank, we have always strived to personalize our offerings for them. clients-consumers, businesses and corporations. Through this partnership, we will also jointly deliver improved SmartHub solutions to the market. We believe this is the start of a great partnership and that the combined strength of HDFC Bank and Paytm will help us strengthen our respective leadership positions.