IPO-bound fintech firm Paytm partners with India’s largest private bank

India-based fintech services provider Paytm has announced a partnership with HDFC Bank, the country’s largest private sector lender by assets.

Image courtesy Quartz India

The deal will help bring the companies’ financial services to semi-urban and rural areas by combining HDFC Bank’s network, products, and credit appraisal capabilities with Patym’s technological platform. The partnership is also expected to introduce more people into formal banking channels.

“Paytm’s reach in the offline and online merchant space and HDFC Bank’s retail influence will aim for dynamic growth in the payments space,” said Renu Satti, chief operating officer of offline payments at Paytm. “This partnership aims to bring innovative products focusing on affordability.”

As part of the partnership, Paytm and HDFC Bank will build solutions across payment gateway, point-of-sale (POS) machines, and credit products including buy now, pay later services as well as Paytm’s Postpaid, Eazy EMI, and Flexi Pay services, among others.

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HDFC Bank will also drive merchant partnerships across India by selling Paytm’s payment solutions in the market.

Under the deal, Paytm and HDFC Bank will jointly launch a co-branded POS product in the retail segment. Paytm will also have the option to offer the product to its own customer base.

The partnership will also help Paytm ramp up its fintech services in the retail segment as the company looks to go public in November, potentially becoming one of the biggest IPOs in the country.