will be operated by credit card Visa And this will include offerings targeted at Millennials, business owners and merchants, an official statement 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.
HDFC Bank, the largest private sector which also leads Credit Card The clause, as a penalty for repeated outages, banned the issuance of new credit cards for more than eight months. After the ban was lifted, it outlined aggressive plans to recover lost market share in up to a year.
The bank had said it would focus on distribution partnerships to achieve its target, which envisages increasing new credit card sales to 5 lakh per month by the end of the financial year from 3 lakh in November 2021 .
HDFC Bank and Paytm announced a tie-up on the payments side last month. Paytm already has tie-ups with foreign lender Citi to issue co-branded credit cards. Citi is looking to exit retail banking activities in the country.
The HDFC Bank-Paytm co-branded card is slated for launch next month, ahead of the festive season, which usually sees an uptick in spending, a full suite of products will be available by December, the statement said.
Bhavesh Gupta, CEO, Paytm Lending said, “With our technological capabilities, Paytm’s merchant partners and new-to-credit millennials in India will now be able to build a healthier credit profile and access opportunities available in the formal economy. ”
Parag Rao, group head of consumer finance, HDFC Bank, termed it as an effort to enable consumption to drive economic growth and said the bank is the largest player in both card issuance and merchant acquisition.
The bank’s stock was trading 0.64 per cent lower at Rs 1,573.15 on the BSE at 1300 hrs compared to a 0.20 per cent decline on the benchmark.