InvestorQ : Why is HDFC Bank launching credit cards in collaboration with Paytm?
Anamika Sodhani made post

Why is HDFC Bank launching credit cards in collaboration with Paytm?

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Angel dcosta answered.
3 months ago
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HDFC Bank proposes to offer co-branded credit cards in collaboration with Paytm, which owns one of the largest consumer payment digital franchises in India. These cards will be on the Visa platform considering the ban on Mastercard currently for issuing fresh cards. The collaboration of HDFC Bank and Paytm will target the customer base of entrepreneurs and millennials. This is a new segment that the bank will be targeting altogether.

The tie-up seeks to combine the customer engagement skills of HDFC Bank with Paytm’s massive customer base of 33 crore customers. The focus will be on Tier-2 and Tier-3 cities, where Paytm is extremely popular. This is part of HDFC Bank’s, game plan to recoup the 2% market share that it lost during the RBI ban on issue of fresh cards. HDFC Bank will also targets specifically the 21 million merchants that are registered with Paytm.

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