HDFC Bank expands SME payment solutions; rolls out 4 credit cards

HDFC Bank has announced the expansion of its SME Payment Solutions with the launch of a range of credit cards customised for business owners, entrepreneurs, and freelancers. The credit cards will cater to the requirements of the self-employed community, including MSMEs, startups, professionals, and freelancers, and will be available in 4 variants – BizFirst, BizGrow, BizPower, and BizBlack.

India’s largest private sector bank said that this offering makes up a part of the strong suite of SME payment solutions that they offer. "HDFC Bank's SME Payment Solution is designed to meet the diverse payment needs of self-employed individuals, SMEs, and MSMEs. The business credit card range offers an interest-free credit cycle of 55 days, savings on core business spends like utility bills, GST, income tax, vendor payments, business travel, and business productivity tools," the bank said.

Also read: RBI approves HDFC Bank proposal to buy up to 9.5% stake in IndusInd Bank

The bank has also introduced a unified digital platform that consolidates all payables such as vendor payments, utility bills, statutory payments etc. On the receivable side of payments, the platform will manage and optimize end-to-end supply-chain arrangements and reconciliation. It provides a detailed dashboard with one view of payments made and accepted, for better cash-flow management.

Speaking at the launch, Mr. Parag Rao, Country Head – Payments, Liabilities Products, Consumer Finance & Marketing HDFC Bank said, “The recently introduced payments platform has capabilities to process statutory payments, utility bills, onboard verified vendors and centralized payments, providing custom dashboards and comprehensive MIS. Currently, 6,500 corporates are making payments to over 14,000 registered vendors on the platform, facilitating a total spend of Rs 82,000 crores since November 2021."

"Moreover, the Bank's Business & Commercial Payment Solution has efficiently processed Rs 26,000 crores in statutory payments in the current financial year, establishing itself as a trusted and efficient financial partner for businesses," he added.

Commenting on the ongoing Paytm Payment Bank crisis, Rao said that HDFC Bank is in a "wait and watch" mode. He was replying to some media questions on reports about Vijay Shekhar Sharma-led Paytm reaching out to large banks for support.

In September 2022, Paytm digital application launched the Paytm X HDFC Bank credit card in collaboration with HDFC Bank that offered benefits to its users in terms of cashbacks, reward points, and discount offers. 

Recently, Paytm faced a turbulent period following a regulatory crackdown by the Reserve Bank of India (RBI). The RBI directed Paytm Payments Bank to suspend its major banking services due to regulatory lapses, resulting in a major fall in Paytm's shares.

Paytm CEO and founder Vijay Shekhar Sharma, since then, has been trying to steer the ship to safe shores and, in recent developments, has met RBI officials and the Finance Minister, Nirmala Sitharaman, as per media reports.