HDFC partners with PayTM to boost credit card business
HDFC Bank has announced a partnership with PayTM, a digital payment tool, to start selling co-branded plastics before the start of the holiday season. The move aims to revive the private lender’s lost business in the credit card segment.
Credit cards would be funded by Visa. The private lender said the alliance will strive to provide a wider range of services to all customer segments, in particular by focusing on Millennials, business owners and traders. The launch is scheduled for October 2021 – coinciding with the holiday season.
PayTM and HDFC would roll out business credit cards for partner merchants in small towns. This would mark the digital payment tool’s foray into the merchant credit card segment. There are also plans to introduce a full range of consumer credit cards.
HDFC Bank and Paytm announced a reconciliation on the payments side last month. The digital payments facilitator already has a connection with a North American private lender under which co-branded credit cards are issued. Citi is looking to pull out of its retail banking business in India.
The lost ground HDFC aims to cover
On December 2, the Reserve Bank of India (RBI) instituted an eight-month ban on issuing new credit cards to the private bank. The decision was made in the face of a series of two-year mobile, internet and payment service outages. The immediate trigger was the failure of the bank’s payment and banking system due to a power outage in the main data center. Last month, RBI authorized HDFC to begin reissuing credit cards.