Paytm and HDFC Bank have established a strategic collaboration to drive “new digital solutions for financial transformation in the country by combining their capabilities in banking, lending, and digital payments.”
“The integration of HDFC Bank’s network, products, and credit evaluation skills with Patym’s technical platform will accelerate digital transformation in semi-urban and rural India while bringing more people into formal banking channels,” according to a statement released on Monday.
The collaboration seeks to offer “complete” solutions spanning “Payment Gateway, POS Machines, and Credit Products, including Paytm Postpaid, which is a Buy Now Pay Later (BNPL) solution, Eazy EMI and Flexi Pay, and more.” The partnership’s initial phase is offering payment gateways and point-of-sale (PoS) solutions to Indian retailers.
Paytm and HDFC Bank will jointly provide two POS options:
a) Paytm will provide its existing line of Android POS devices to merchants across India, facilitated by HDFC Bank. HDFC Bank’s salespeople would begin offering Paytm’s payment solutions in the market as a result of the agreement. The payment partner will be HDFC Bank, while the distribution and software partner will be Paytm.
b) In the retail space, Paytm and HDFC Bank will jointly create a co-branded POS solution, which Paytm would have the option to provide to its own user base.
Bhavesh Gupta, CEO of Paytm Lending, said, “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 and 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.”
Parag Rao, group head, payments, consumer finance, digital banking and IT, 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”.
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