HDFC Bank offers virtual accounts to PayZapp users
By Mayur Shetty
MUMBAI: HDFC Bank will soon start offering digital savings bank accounts, credit cards and instant loans to users of its PayZapp app. The bank also plans to enrol additional merchants for acceptance of electronic payments to increase its present network of 1.2 million shops to 5 million in 18 months.
PayZapp, which was launched two years ago, has more than 14 million users. Over half of these are young users who do not have a bank account. “We are marrying a lot of our strategies by integrating changes that are happening in the market into our own business activity.
HDFC Bank is already a scale player in cards and loan assets. We will use our digital back-end strengths in these businesses to bring more scale into PayZapp,” said Parag Rao, group head for marketing, credit cards and payments business.
According to Rao, PayZapp has the potential to become a 50-million customer franchise with capability for instantly opening accounts and offering credit cards and loans.
HDFC Bank is already the market leader in credit cards with over 1 crore in circulation. It currently issues 2.5 lakh new cards every month. The PayZapp platform is expected to take this to 5 lakh a month. The offered savings account will be a completely digital product and the credit cards virtual, with an option to receive the plastic version. The instant loans would be powered by fintech (financial technology). “Fintech lending is the new kid on the block, which has brought a different way of sourcing customers for loans,” said Rao.
On the merchant acquisition side too, the bank’s SmartHub app will play a pivotal role in expanding acceptance to 5 million merchants. The app enables merchants to acquire payments using BharatQR, UPI, e-wallet or Aadhaar Pay.
According to Rao, HDFC Bank aims to be a one-stop shop for solutions to accept different forms of e-payments. The bank will offer merchants acceptance solutions for different form factors and will target early adopters of e-payments. “Early adopters will migrate to savvier and more trustworthy brands that offer all services in one box. A merchant who accepts only QR code today will eventually look at a point of sale machine and will also look for an entity that can provide multiple payment acceptance options,” said Rao.
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Via:: Economic times – Wealth