IndusInd Bank and online payment company Payu India entered into a strategic partnership too joint solutions.
“The partnership is aimed at bridging the gap between conventional banking world and the new age online payment systems,” the private sector bank said.
It will help bring the full suite of consumer banking products online, it added.
“The Online Payment and Banking sectors are going through a transition phase across the world,” said Shailaz Nag, COO and Co-founder, Payu India.
“In India, where the demography makes it even more challenging, the transition is at many layers. Indian consumers have accepted online payment systems and seamless modes of online payment like mobile wallet, with open arms.
“However the trust they have on the Indian Banking system in the past few decades, still remains unmatched. With this partnership, we are bringing the cutting edge online payments technology and a bouquet of conventional banking services together for one of its kind in the history of Digital Banking.”
The Indian payments processing industry has taken off in a big way over the last two years, with lots of start-ups. Many big banks too have started their own payments processing services and platforms, leading to consolidation in the industry. Smaller banks, meanwhile, have tied up with one of the existing independent platforms.
PayU India claims to be the No.1 payment aggregator in the Indian e-commerce category and counts outlets like Goibibo, Snapdeal, Bookmyshow, Jabong, Ferns n Petals, Freecharge, Zomato, Tradus, Rechargeitnow and Groupon India among its clients.
It also claims that it has the highest merchant acquisition rate in the country and has a significant pan-India presence.
The company is owned by the Gurgaon-based NASPERS Group.
“With digital banking and payments gradually becoming the heart of customer relationships, we are investing to build strategic alliances in the digital world to deliver online banking and payment experiences that are simple, non-intrusive, rich in contextual content, and are truly cross-channel, covering social and commerce platforms,” said Sumant Kathpalia, Head – Consumer Banking, IndusInd Bank.
“This collaborative effort of a ‘Digital Bank’ looks quite promising with the plethora of opportunities it brings in. It enables creation of co-branded digital consumer banking products that will revolutionize the way digital banking and payments have shaped up till date.”
The tie-up will take the Bank’s ‘Onthego’ digital banking proposition to the next level through Payu India’s cutting edge technologies such as One Tap, express checkout browser etc. and is expected to attract new customers across demographies, the bank said.
The two partners have signed a MoU covering this joint strategic vision, and announcements about the new products and services under this partnership in will be made in next 4–6 months’ time, the bank added.
The Induslnd Bank has 905 branches and 1621 ATMs in India.