Paytm and HDFC Bank have announced they have entered into a strategic partnership with the aim of driving "innovative digital solutions for financial transformation in the country by combining their strengths in the banking, lending and digital payments space".
A statement on the tie-up on Monday noted "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".
The partnership aims to provide 'comprehensive' solutions across "Payment Gateway, POS Machines and Credit Products including Paytm Postpaid which is Buy Now Pay Later (BNPL) solution, Eazy EMI and Flexi Pay, and more". The first leg of the partnership includes providing payment gateways and PoS solutions for Indian merchants.
Paytm and HDFC Bank will offer two broad POS solutions:
a) HDFC Bank will drive 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.
b) 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.
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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”.