In this arrangement, HDFC Bank will be the payment partner and PayTM will provide its distribution and software. The Bank will make PayTM’s Android Point of Sale (PoS) systems available to its customers.
Together, they will offer merchants a package including a payment gateway and PoS systems, initially. In the future, they will also offer credit products like PayTM Postpaid, Easy EMI and Flexi Pay.
“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,” Parag Rao, group head, payments, Consumer Finance, Digital Banking & IT, HDFC Bank, said to TOI. SmartHub is the bank’s payment system designed with a mobile-first approach.
The country’s leading credit card issuer with a spend share of over 27 per cent, HDFC Bank will be leveraging its network, products and credit appraisal capabilities with this partnership. Besides that, this partnership will push payments in semi-urban and rural areas, and bring more people into the formal banking system.