Paytm partners with HDFC to launch products across Digital Payments
Paytm has partnered with private lender HDFC to boost its financial services offering ahead of an IPO. They hope to create products across digital payments, lending, and point-of-sale solutions by combining their expertise in banking, lending, and digital payments.
Paytm Postpaid, which is a Buy Now Pay Later (BNPL) service, Eazy EMI, and Flexi Pay are among the solutions that the two companies will build up across payment gateways, POS machines, and credit products.
For Indian merchant partners, the first leg of the relationship will consist of a Payment Gateway and co-branded POS Solutions.
Paytm will equip merchants with its existing line of Android POS devices, while the bank will drive merchant partnerships across India.
HDFC salespeople would be in charge of selling Paytm's payment solutions.
With the use of HDFC Bank's network, products, and credit appraisal capabilities, as well as Patym's technical platform, the goal is to accelerate digital transformation in semi-urban and rural India.
Paytm claims to have 333 million active users and 21 million merchants.
HDFC Bank is a major player in the payments ecosystem, with over 50 million credit and debit card customers and leadership in both credit card issuing and buying. It has over two million merchant acceptance points and a 48 percent share of the merchant acquiring volume market.
"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," stated Bhavesh Gupta, CEO, Paytm Lending.
"Through this partnership we will also be jointly delivering enhanced SmartHub solutions to the market," stated Parag Rao, Group Head, Payments, Consumer Finance, Digital Banking and IT, HDFC Bank.
Paytm plans to do an initial public offering (IPO) in the amount of Rs 16,600 crore by October.