2017 – “payment wallets like Paytm have no future” – Aditya Puri
2021 – HDFC and Paytm tie-up to leverage on each other’s strengths.
Times change and so do the business compulsions !
It’s a very interesting arrangement and has the potential to lay roadmap for similar other tie-ups in future.
Why is it so?
It’s a partnership of two very different but synergetic entities and approaches.
HDFC is an old generation bank that over the years has proven to be shrewd, intelligent, conservative and boring. Whereas Paytm is new age aggressive payments technology solutions provider focused on retail and small businesses.
The former brings in the credit assessment and funding capabilities and the latter distribution, technology and aggression.
Combined two and there is a potential of creating significant disruption. The products that they would be working together would include – Point of Sales (POS) payment/ credit solutions, banking products and services to small merchants and retail etc.
However, key is how well they are able to work together in an aggressive but controlled manner. As we know, Paytm is soon going public with lot of expectations whereas HDFC is an established bank.
It’s an arrangement worth keeping a close watch on…
‘Paytm got customers by way of cashbacks, not by rendering services’