A month after the Reserve Bank of India (RBI) partially lifted a ban on HDFC Bank, allowing it to restart issuance of credit cards, the lender on Monday announced its tie-up with Paytm for selling co-branded credit cards from October onwards, coinciding with the beginning of the festival season.
The credit cards would be enabled by Visa and will be aimed at a select clientele including the youth, merchants and business persons, according to a statement issued by HDFC Bank.
“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 statement further read.
The tie-up is aimed at providing superior value and experience to customers with both HDFC Bank and Paytm leveraging off through each other’s strengths, the statement added.
“The alliance will target deeper penetration in tier II and tier III markets, and enable faster acceleration of digitised payments across the country,” both the entities stated.
Paytm has a customer base of more than 330 million consumers and 21 million merchants, while HDFC Bank has more than 5 million customers using debit, credit and prepaid cards.
On December 2, 2020, the RBI had barred HDFC Bank from issuing credit cards after receiving complaints of frequent break downs in its internet and mobile banking systems.
Though the central bank lifted the ban on August 18, 2021, allowing HDFC Bank to issue credit cards, the restrictions on fresh digital launches remain.