India’s largest private sector bank HDFC and digital payment app Paytm have announced their plans to offer co-branded credit cards on the Visa platform. The partnership aims to provide a comprehensive range of credit cards across customer segments, with special focus on millennials, business owners and merchants.
The credit cards will be launched before the onset of festive season to tap into the high consumer demand for credit cards, equated monthly installments (EMIs), and buy now pay later (BNPL) options. The full suite of products will be offered by the end of December 2021.
“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,” the bank said.
Paytm has a reach of over 330 million consumers and 21 million merchants, while HDFC Bank has over 5 million debit, credit and prepaid cards, and serves 2 million merchants through its offerings.
“….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.
The bank had said that it will focus on distribution partnerships to achieve its target, under which it envisages ramping up new credit card sales to 5 lakh a month by end of the fiscal from 3 lakh in November 2021. This will be the first co-branded credit card launch by HDFC after the Reserve Bank of India (RBI) withdrew its ban order against the launch of new credit cards by the private lender.