Fintech startup and HDFC Bank have entered into a strategic partnership to launch digital payments, lending, and PoS-related products, in a bid to accelerate fintech adoption in semi-urban and rural parts of the country.
The deal will combine HDFC’s retail products and network with Paytm’s tech platform to drive financial inclusion in areas that haven’t yet adopted the use of fintech solutions, the two companies said in a press release on Monday.
The two will build solutions across payment gateways, point-of-sale machines, and credit products for end-users and merchant partners.
The partnership is expected to help new businesses, who have recently built their online infrastructures, scale up their operations.
“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,” said Bhavesh Gupta, CEO of Paytm Lending.
The first leg of the partnership will focus on creating a payment gateway and PoS solution for merchant partners, Paytm said.
On the PoS front, HDFC Bank will drive merchant tie-ups, and Paytm will offer its existing range of Android PoS devices. The two will also offer a co-branded PoS product in the retail segment, which Paytm can sell to its own customer base.
“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,” Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking, and IT at HDFC Bank, said.
At present, Paytm has over 333 million users and 21 million merchants on its platform. HDFC, on the other hand, has over two million merchants in its network and holds a 48 percent market share on merchant acquiring volume.
