On August 9th 2018, PayPal Holdings, Inc., one of the largest online payment solutions companies, announced its partnership with HDFC Bank Ltd. for enabling more convenient online payment experience to the customers. HDFC Bank Ltd. is the largest credit card issuing bank in India with more than 35 Mn debit & credit cards in circulation; whereas, PayPal offers online payment service in more than 200 markets worldwide through a network of over 19 Mn merchants. The partnership is aimed at offering the customers greater flexibility and options for making payments and managing their funds.
Under the agreement, HDFC bank customers can open PayPal account and set it as their preferred mode of payment. The partnership will offer numerous opportunities for both the companies to establish and strengthen a robust customer base in the world’s fastest growing online payments market. Through this partnership, PayPal aims to expand its presence in India using the existing vast customer base of HDFC Bank Ltd. Additionally, the partnership is expected to further boost digital payments in India which is observed among the most lucrative markets for online payments.
The partnership with HDFC Bank Ltd. would ensure rapid expansion of customer base for PayPal Holdings, Inc. in India. HDFC Bank Ltd. is the largest private sector bank in the country with huge customer base. Earlier in November 2017, PayPal Holdings, Inc. launched its domestic operations in India, marking its entry in the country. India is undergoing rapid shift towards digital payments under the government’s cashless economy initiative and is currently being governed by homegrown companies such as Paytm, CCAvenue and few others. Partnership with HDFC Bank Ltd. would provide the necessary push the company for effectively competing with the domestic online payment companies.