FinTech platform Paytm and private Indian bank HDFC Bank announced a strategic partnership Monday (Aug. 23) on financial solutions for India customers and merchants in a move to “accelerate digital transformation in semi-urban and rural India,” Mint reported.
The deal with India’s largest private bank comes as Paytm continues to prepare for its initial public offering (IPO) and will include the launch of new products in the digital payments, lending and point-of-sale (POS) solutions spheres, according to the report.
Paytm has more than 333 million users and 21 million merchants, while HDFC has more than 50 million debit and credit card customers and 2 million merchant acceptance points, the report stated.
The partnership will include solutions in payment gateways; POS machines and credit products, including buy now pay later (BNPL) solution Paytm Postpaid; Eazy EMI; and Flexi Pay, according to the report. HDFC Bank will be the payment partner, and Paytm will be the distribution and software partner for a new payment gateway and POS solutions.
Paytm and HDFC Bank also plan to launch a co-branded retail POS product, the report stated.
“Together we aim to provide innovative digital lending and payment solutions for consumers and merchants alike,” said Paytm Lending CEO Bhavesh Gupta, according to the report. “This partnership will strengthen the financial services ecosystem by bringing together our technology and digital solutions and HDFC Bank’s retail and credit prowess.”
HDFC Bank Group Head, Payments, Consumer Finance, Digital Banking and IT Parag Rao said in the report: “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.”
Paytm is expected to launch India’s largest IPO near the end of October.
Read more: Paytm’s Landmark IPO Could Launch By October
The company also expects to break even in 18 months. The firm filed for a 166 billion rupee ($2.2 billion) IPO in the hopes of going public before the Diwali festival in November.