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For credit card push, banks now turn to startups

Credit cards gain popularity as startups work out innovative solutions with banks to expand the user base. Can new-age private banks corner a larger market share through these partnerships?

August 19, 2020 / 11:57 AM IST
Representative Image

Representative Image

India has always had a low penetration of credit cards, and digital payments are primarily being driven by debit cards, net banking, wallets or UPI, all of which use the savings bank account as the source of funds. That is showing some early signs of change.

A clutch of early-stage fintech startups have partnered with some ambitious private-sector banks to popularise credit cards across commercial as well as retail segments.

Technology players like M2P Solutions and Zeta are helping legacy financial institutions scale up their backend to integrate card payment services quickly and at a low cost.

Another clutch of players like FPL Technologies, Karbon, Enkash, and neo banking startup Open are trying to get customers through their digital distribution channels.