Recently, With an aim to support its financial services proposing ahead of an IPO, Paytm has inked with HDFC and plans to offer new products across digital payments, lending, and point of sale solutions by combining their strengths in the banking, lending, and digital payments space.
Both companies will build resolutions across payment gateway, POS machines, and credit products including Paytm Postpaid which is the Buy Now Pay Later (BNPL) solution, Eazy EMI, and Flexi Pay.
The first step of the joining will comprise Payment Gateway and co-branded POS Solutions for Indian merchant partners. However the bank will drive merchant partnerships across India, Paytm will bid them its existing range of Android POS devices.
The goal is to quicken digital transformation in semi-urban and rural India with the combination of HDFC Bank’s network, products, and credit appraisal capabilities and Patym’s technological platform.
Paytm claims to be having 333 million users and 21 million merchants onboard.
Having 50 million credit and debit card customers, HDFC Bank is a strong player in the payments ecosystem with leadership in both credit card issuing and acquiring businesses. It has a footprint of over two million merchant acceptance points and a 48 percent business market share on merchant acquiring volume.
Bhavesh Gupta, CEO, Paytm, said, "This partnership will further strengthen the 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, states, "Through this partnership we will also be jointly delivering enhanced SmartHub solutions to the market.”
Paytm is looking to launch an INR 16,600 crore IPO by October