Paytm and HDFC bank announced on Monday that they have entered into a strategic partnership. The association aims to promote innovative digital solutions for financial transformation in the country by combining its strengths in banking, credit and digital payments.
The integration of HDFC Bank's credit rating network, products and capabilities, Patym technology platform will accelerate the digital transformation of semi-urban and rural areas in India, while also attracting more people to formal banking channels.
Paytm has 333 million users and 21 million merchants on board.
With over 50 million card customers (credit and debit cards), HDFC Bank is a strong player in the payment ecosystem with its leadership in the credit card issuance and acquisition business. HDFC in merchant acquisition volume has 48 percent merchant market share and has a footprint of over two million merchant acceptance points. It remains the largest credit card issuer in the country with a spending share of over 27 percent.
Through this partnership, Paytm & HDFC Bank will develop end-to-end solutions for payment gateway, POS machines and credit products, including Paytm Postpaid, a Buy Now Pay Later (BNPL) solution, Eazy EMI, Flexi Pay and more.
The first phase of the partnership will include payment gateway and point of sale solutions for Indian business partners.
The partnership between Paytm and HDFC Bank aims to empower startups, which have recently come online, and allow them to expand further.
Paytm and HDFC Bank are collaborating to offer two broad point-of-sale offerings:
HDFC Bank will lead business partnerships across India, for which Paytm will offer its existing range of Android POS devices. Through the partnership, HDFC Bank resellers will start selling Paytm payment solutions to 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 initial public offering of Rs 16,600 crore as soon as possible and most likely in October. The company had filed preliminary documents for its initial stake sale with market regulator SEBI on July 15.
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