Paytm is in talks with Bank of Baroda, IndusInd Bank, SBI Card and Standard Chartered Bank to issue co-branded cards to around 17 million small merchants on the platform, sources told The Economic Times.
The move is aimed at extending the fintech player into a “full-fledged financial services players” and comes after the company announced its entry in the loan business, the report noted.
The deal would make a new range of co-branded cards available to merchants via the app, similar to the fintech firm’s previous offerings with Citi Bank and SBI Card, sources said.
Moneycontrol could not independently verify the report.
Such partnerships usually entail that fintech firms such as Paytm provide the app interface and distribution network, while the banks handle processing costs and value-added services e.g. cashback.
Shailendra Singh, CEO of BOB Financial Solutions (BFSL), which is the non-banking arm of Bank of Baroda told the paper that the company is “looking at prospective co-branded partnerships, but cannot comment on specifics till it is finalised.”
SBI Card, Standard Chartered, IndusInd Bank and Paytm did not respond to queries, as per the report.
Paytm CEO Bhavesh Gupta had announced that it would make available loans worth Rs 1,000 crore to its merchants – double the amount the previous year. Fintech firms have over the year taken increasing steps towards loans and insurance through partnerships with licensed players.