HDFC Bank has partnered Paytm to launch co-branded credit cards with an aim to provide one of the widest range of offerings across customer segments, with special focus on millennials, business owners and merchants.
The credit cards, powered by Visa, will be customised 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 companies said in a release.
"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," it added.
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Under the partnership, HDFC Bank and Paytm will introduce business credit cards, which will offer 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 will mark Paytm's foray into the credit card segment for merchants, benefitting its base of more than 21 million merchants, the release said.
"The partnership aims to deliver superior value and experience to customers by leveraging off each other's strengths: HDFC Bank's salience as India's leading issuer of credit cards and strength in providing superior customer engagement, and Paytm's digital prowess and reach of over 330 million consumers," the companies said.
The alliance will target deeper penetration in Tier II and Tier III markets, and enable faster acceleration of digitised payments across the country.
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The companies said 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.
"With our technological capabilities, Paytm's merchant partners and India's new-to-credit millennials will now able to build a healthy credit profile and gain access to opportunities available in the formal economy...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," Paytm Lending CEO Bhavesh Gupta said.
Parag Rao, Group Head - Payments, Consumer Finance, Digital Banking & IT at HDFC Bank said that the partnership is an effort on the bank's part to enable consumption, particularly during festive season, which will further fuel the economic growth of the country.
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