Paytm and HDFC Bank collaborate to develop payment products for new online ventures

The latest news state that HDFC Bank will rope in merchant partnerships whereas Paytm will offer its existing Android PoS devices, the two giants are all set to launch a co-branded retail PoS product.

 

Another big tie up on the go!

A strategic partnership announcement was made recently by leading digital payments IBO bound firm Paytm and India’s largest private sector bank HDFC, with an intention to curate comprehensive solutions including payment gateway, machines, point of sale, and credit products added with Paytm Postpaid which is Buy Now Pay Later (BNPL) solution, Easy EMI and Flexi Pay.

The partnership’s primary aim is to empower new businesses which have recently ventured online, thereby enabling them to scale up with ease and convenience.

The current partnership will surely make a mark towards a big change from 2017 for HDFC Bank, as its Managing Director Aditya Puri had once said that payment wallets like Paytm have no future.

Ever since then Paytm has evolved a lot and even received the license to operate as a payments bank.

Two broad PoS offerings are being availed by Paytm and HDFC Bank

Amongst the offering – firstly, HDFC Bank will rope in merchant partnerships across India, to whom Paytm will offer its existing range of Android POS devices. To be more precise – HDFC’s sales force will initiate selling Paytm’s payment solutions in the nations market. HDFC Bank will remain the payment partner, and Paytm will serve as its distribution and software partner.
HDFC Bank SmartHub solutions is basically an integrated platform which offers  merchants a one stop solution shop for all their business needs-payments, banking, lending and segment specific business solutions.

Next offering – The launch of a co-branded PoS product in the retail segment, by Paytm and HDFC Bank where Paytm will be free to offer it to its own customer base.

Renu Satti, COO, Offline Payments, Paytm said that “Paytm’s reach in the offline and online merchant space and HDFC Bank’s retail influence will aim for dynamic growth in the payments space. Paytm has a history of launching innovative products that have made way for adoption of retail payments among various merchant partners. This partnership aims to bring innovative products focusing on affordability”.

Both the firms on this upcoming tie up in a joint statement positively said that – The coming together of HDFC Bank’s network, products and credit appraisal capabilities and Paytm’s technological platform will upscale & speed up the digital transformation in semi-urban and rural India,  thereby expand its formal banking channels by bringing more people.

Parag Rao, Group Head–Payments, Consumer Finance, Digital Banking & IT, HDFC Bank notified that “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.

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