Paytm and HDFC Bank announced a strategic partnership to deliver financial solutions across India. The giants will launch products across digital payments, lending and POS solutions. The combined network of both the companies is expected to have a wide reach.
“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,” said the companies in a combined statement.
Through this partnership Paytm and HDFC Bank will build comprehensive solutions across payment gateways, POS machines, credit products such as Paytm Postpaid, Eazy EMI, Flexi Pay, and more.
In the first leg, the companies will roll out a payment gateway and POS solutions for Indian merchant partners.
The companies said that the lender will drive merchant partnerships to which Paytm will offer its existing range of Android POS devices. HDFC Bank’s salespersons will also 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,” they said.
Paytm and HDFC Bank will also jointly launch a co-branded POS product in retail segment, which Paytm will have the option to offer to its customer base.
Paytm is one of the countries largest payments platforms with 333 million users and 21 million merchants onboard. HDFC Bank is one of the largest private lenders. It has 50 million card customers for both credit and debit.