You are here: Home » Finance » News » Banks
Business Standard

HDFC Bank ties up with Paytm to issue co-branded credit cards from Oct

The credit cards will be launched in October during the festive season to tap into the high consumer demand for credit cards

Topics
HDFC Bank | Paytm | Credit Card

Subrata Panda  |  Mumbai 

credit card
HDFC Bank and Paytm will also collaborate to introduce business credit cards, which will offer a host of benefits for merchant partners from the smaller cities and towns of India

will work with to offer co-branded credit cards on the Visa platform to businesspersons, millennials and others, said the lender on Monday.

This tie-up will see the lender leverage its position as the leading credit card-issuer and its expertise in superior customer engagement to offer services to Paytm’s large customer base of 330 million, thus enabling a deeper penetration in Tier II and III cities, accelerating the adoption of digital payments.

The credit cards will be launched in October during the festive season to tap into the high consumer demand for credit cards, equated monthly installments (EMIs), and buy now pay later (BNPL) options and the full suite of products will be offered by the end of December 2021.

In a statement, the bank said, the credit cards 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 offer will also facilitate small business owners.

and will also collaborate to 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 would mark Paytm’s foray into the segment for merchants, benefitting Paytm’s base of more than 21 million merchants”, the statement said.

This collaboration between and is one of the strategies of the lender is adopting to regain its lost market share in the space due to the ban imposed on it by the regulator for eight months, following several outages in its digital offerings.

As of July (latest data), HDFC Bank has 14.76 million credits in the market. Its market share in oustanding credit cards dropped by 2 per cent due to the restrictions imposed by the regulator regarding issuance of new cards. Meanwhile, its competitors, especially ICICI Bank, gained market share at its expense. Post lifting of the embargo, the bank has vowed to come back with a bang in this segment and regain the space it has lost.

The lender is now looking to get back to its pre-embargo run rate of issuing 300,000 credit cards per month in the next 2-3 months. And, immediately post that, the lender will look to issue 500,000 credit cards every month beginning February 2022. Consequently, the lender is expecting to regain its lost market share in outstanding credit cards space in the next 3-4 quarters.

Dear Reader,


Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.
We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor

First Published: Mon, September 20 2021. 13:35 IST
RECOMMENDED FOR YOU
.