HDFC Bank and Paytm, on September 20, announced a plan to launch a range of credit cards powered by VISA. The partnership aims to provide a range of offerings across customer segments, with special focus on millennials, business owners and merchants, the bank said in a press release.
This is the first co-branded credit card launch by the country's largest private sector lender after the Reserve Bank of India (RBI) lifted a ban on the bank on new credit card launches in August this year. The RBI had imposed the ban on the bank in December last year following a series of digital outages.
"The credit cards will be customized 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 offering will also facilitate small business owners," the bank said.
The launch is planned in October 2021 to coincide with the festive season to tap into potentially higher consumer demand for credit card offers, EMIs and Buy Now Pay Later options, with the full suite of products to be on offer by the end of December 2021, HDFC Bank said.
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HDFC Bank is one of the biggest card issuers in the country with around 14.8 million credit cards and 37.7 million debit cards, while ICICI Bank has around 11 million credit cards and 39 million debit cards, as per RBI statistics. ICICI Bank had aggressively pushed new digital initiatives like iMobilePay which provides payments services to customers of other banks too.
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