Fintech major Paytm on Monday announced a strategic partnership with India’s largest private sector lender HDFC Bank wherein the two companies will provide innovative digital solutions for financial transformation by combining their strengths in banking, lending, and digital payments space.
The latest move comes nearly a week after the Reserve Bank of India (RBI) allowed 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 comprehensive solutions across payment gateway, POS machines and credit products including Paytm Postpaid which is a buy now pay later (BNPL) solution, easy EMI and Flexi pay, and more.
The first leg of the partnership will include payment gateway and POS solutions for Indian merchant partners. Apart from this, the Paytm – HDFC Bank partnership will aim to empower new businesses which have recently ventured online and enable them to scale up further.
As per the deal, there will be two POS offerings –
1. HDFC Bank will be driving 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.
2. Paytm and HDFC Bank will jointly launch a co-branded POS product in the retail segment, which Paytm will offer to its own customer base.
“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,” Bhavesh Gupta, CEO at Paytm Lending said in the statement.
Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking & IT at 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.”