HDFC Bank and Paytm today announced plans for launching a comprehensive range of credit cards powered by VISA. In a first-of-its-kind alliance, the partnership aims to provide one of the widest range of offerings across customer segments, with special focus on millennials, business owners and merchants.
The launch is planned in October 2021 to coincide with the festive season to tap into potentially higher consumer demand for credit card offers, EMIs and Buy Now Pay Later options, with the full suite of products to be on offer by the end of December 2021.
The partnership aims to deliver superior value and experience to customers by leveraging off each other’s strengths. The alliance will target deeper penetration in Tier II and Tier III markets, and enable faster acceleration of digitized payments across the country.
How it works
The credit cards will be customized 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, it said in a press release.
Under the partnership, 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.
They will also introduce an entire range of consumer credit cards, offering cashbacks and benefits, including the Mobile credit card targeted at digital-first millennials. Users can apply through a digital and paperless process and complete the on-boarding process fully through the Paytm app.
Bhavesh Gupta, CEO, Paytm Lending said, “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.”
Parag Rao, Group Head – Payments, Consumer Finance, Digital Banking & IT, HDFC Bank, said: “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."
T R Ramachandran, Group Country Manager, India and South Asia, VISA said, “Consumers and businesses alike are embracing digital payments today. With cards designed to suit the needs of each type of customer – from the new-to-credit to the digitally savvy and small merchants, I am confident this partnership will enable and drive access to credit.”