Paytm partners with HDFC Bank to provide financial solutions to consumers and merchants in India

Fintech major Paytm and HDFC Bank announced a strategic collaboration on Monday, in which the two businesses would merge their expertise in banking, lending, and digital payments to create new digital solutions for financial transformation. The decision comes about a week after the Reserve Bank of India (RBI) gave the private sector lender permission to begin issuing new credit cards.

Paytm is India's largest payment platform, with 333 million customers and 21 million merchants. As of March 31, 2021, India's largest payments platform in terms of the number of consumers, merchants, consumer-to-merchant transactions, and revenue. Whereas, HDFC Bank has over 50 million card clients (both credit and debit cards) and leadership in both credit card issuing and acquiring industries. It has over 2 million merchant receiving points and a 48% share of the merchant accepting volume market. With a spend share of over 27%, it is still the country's leading credit card provider.

Paytm and HDFC Bank will work together to develop comprehensive solutions across payment gateways, point of sale (PoS) machines and credit products such as Paytm Postpaid, the company's buy now pay later (BNPL) service, EMI, and other delayed payments products.

• For Indian merchant partners, the first leg of the partnership will include Payment Gateway and POS Solutions.
• The partnership between Paytm and HDFC Bank will attempt to empower young businesses that have recently gone online and help them scale up.

1. Paytm will provide its existing range of Android POS devices to merchants that partner with HDFC Bank across India. HDFC Bank's salespeople will begin offering Paytm's payment solutions in the market as a result of the partnership. The payment partner will be HDFC Bank, while the distribution and software partner will be Paytm.
2. Paytm and HDFC Bank are partnering together to develop a co-branded POS product in the retail space, which Paytm will be able to sell to its own customers. Check Paytm Store Discounts and Deals

“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 Smart Hub solutions to the market,” said Parag Rao, group head, payments, consumer finance, digital banking and IT, HDFC Bank.

SmartHub solutions from HDFC Bank are an integrated platform that provides merchants with a one-stop-shop for all of their business needs, including payments, banking, loans, and segment-specific business solutions.

Paytm is expected to launch its IPO for Rs 16,600 crore as soon as possible, most likely in October. On July 15, the business filed drafting documents with the market regulator SEBI for its initial share sale.

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