HDFC Bank Joins Hands With Paytm To Offer Digital Banking Services
HDFC Bank Ltd. has tied up with Paytm to expand its suite of digital banking services offered to individuals and merchants.
The partners will start with payment gateway and point-of-sale solutions for merchants, the online payments firm said in a statement. “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 statement said. They will later look to offer credit products such as Paytm’s buy now-pay later solution Paytm Postpaid, Eazy EMI and Flexi Pay.
Paytm and HDFC Bank, according to the statement, will also launch a co-branded PoS product in the retail segment, which Paytm will have the option to offer to its own customer base.
“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 said in the press release.
This comes at a time Paytm’s parent, One 97 Communications Pvt., is awaiting an approval from the Securities and Exchange Board of India for its own initial public offering to raise Rs 16,600 crore, in what will be the county’s biggest maiden offer.
Paytm, according to a July 15 report by RedSeer, is also India’s largest payments firm with 33.3 crore users and 2.1 crore merchants on its platform.
“Paytm’s reach in the offline and online merchant space and HDFC Bank’s retail influence will aim for dynamic growth in the payments space,” said Renu Satti, chief operating officer (offline payments) at Paytm. “This partnership aims to bring innovative products focusing on affordability.”
According to Parag Rao, group head (payments, consumer finance, digital banking and IT) at HDFC Bank, the partnership will allow HDFC Bank to jointly deliver its SmartHub — an integrated platform that offers various digital banking services such as payments, banking, lending and segment-specific business solutions — to merchants.