India’s largest private lender HDFC Bank and digital payment and financial services app Paytm announced on Monday their plans for launching a comprehensive range of credit cards powered by VISA. With this announcement, this becomes the first time ever that the partnership aims to provide one of the widest range of offerings across customer segments, with special focus on millennials, business owners and merchants.
“At Paytm, we aim to democratize the access to credit to drive financial inclusion amongst our 330mn+ consumers and 21mn+ merchant partners. With our technological capabilities, Paytm’s merchant partners and India’s new-to-credit millennials will now be able to build a healthy credit profile and gain access to opportunities available in the formal economy. We are delighted to partner with HDFC Bank, and Visa, to launch a comprehensive suite of credit cards across customer segments, with special focus on millennials, business owners and merchants. Our Business Credit Cards have been designed basis our deep understanding of our merchant partners and we believe that the offerings will truly benefit their businesses,”Bhavesh Gupta, CEO, Paytm Lending said.
These new credit cards are aimed at targeting every section of society including all age groups. The credit cards would be launched to meet distinct needs of retail customers, from new-to-credit users to affluent users and offer one of the best-in-class rewards and cashback for users. The new cards offering will also facilitate small business owners. The launch of this first of its kind collaboration is scheduled to kick off in October 2021. The launch is also targeted to tap into festive demands starting from Duga Puja in October. The credit card will come with some lucrative options such as EMIs and Buy Now Pay Later options, with the full suite of products to be on offer by the end of December 2021. This is crucial and is significant as HDFC Bank is a leader in the credit card segment in India. The bank has so far offered Rs 5.1 crore credit cards, debit cards and prepaid cards and over 2 million merchants, addressing every market segment, every third rupee spent on cards in India happens on HDFC Bank cards.
HDFC’s dominant presence in the credit card market is going to play a very vital role in this collaboration and will help in increasing the penetration of these cards to tier 2 and Tier 3 cities. Thi will be made possible with Paytm’s immense reach of 330 million consumers. Thus this will enable faster acceleration of digitized payments across the country.
“As India’s largest card issuing and acquiring bank, we are committed to accelerate the adoption of digitization in the country. We believe India’s growth story is robust and this partnership is an effort on Bank’s part to enable consumption, particularly, during festive season, which will further fuel the economic growth of the country. As a leader in the cards space, our objective is to help enlarge the eco-system through such collaborations, which ultimately offers a differentiated experience for customers,” Parag Rao, group head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank said.
HDFC Bank and Paytm will introduce the Business credit cards, offering a host of benefits for merchant partners from the smaller cities and towns of India and enable them to get easier access to credit with instant and paperless approvals. The Business credit cards would mark Paytm’s foray into the credit card segment for merchants, benefitting Paytm’s base of more than 21 million merchants. Now, it would be interesting to see how this collaboration will pan out.
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