HDFC Bank will revamp its PayZapp app and launch it as a complete payment app called PayZapp 2.0 on the latest digital technology platform available.
A revamped payment app, digital credit cards and a fully interoperable merchant solution will be priorities for HDFC Bank’s launch in the next two to three quarters, Parag Rao, the bank’s chief of payments and IT, told FE. The Reserve Bank of India (RBI) lifted its criminal embargo on digital launches by the bank on Saturday.
“Over the next two to three quarters, we would talk about five to six areas where we would enter the market with an improved digital offering or a completely new offering. We will keep them apart to give us time to get everything right and also for customers to include them,” Rao said.
HDFC Bank will revamp its PayZapp app and launch it as a complete payment app called PayZapp 2.0 on the latest digital technology platform available. The bank believes that this app will leverage its existing strengths such as its 60 million strong debit and credit card franchise. Unlike the previous version, PayZapp 2.0 will enable payments via Unified Payments Interface. It includes a range of payment options, including modes such as tap and pay to transact at all merchants with the required activation.
PayZapp 2.0 also has offers in different categories of merchants through the SmartBuy platform. “Over the next three years, we want this to be among the top three payment apps in the country in terms of transactions and volumes,” Rao said, adding that the app will target both new and existing customers.
The bank plans to use the app as a funnel for acquiring new customers. There will be a section for the bank to sell credit cards and other banking products.
The bank’s second priority area is the launch of a mobile-only credit card, which will also be served purely through digital channels. This product line will be a precursor to other mobile DIY (DIY) products that the bank plans to launch, including the Challenger Bank. HDFC Bank had 16.04 million credit cards outstanding in January.
For its merchant clients, HDFC Bank will expand its SmartHub Vyapar app-based solution, which has already had a soft launch. Aimed at medium and small merchants, the app provides a DIY experience and guided travel to leverage all payment solutions, loans and other value-added services on a single platform. The app will be interoperable with other payment platforms for acceptance transactions. For larger merchants, the bank will combine the app with a point-of-sale machine to suit their requirements.
The approach to relationship management in small and medium-sized enterprises (SMEs) is also being further digitized. HDFC Bank hopes to be able to reach a broader group of SMB customers with this shift.
Jefferies analysts said in a March 12 report that HDFC Bank will now be able to launch platforms that integrate its auto, healthcare and rural finance offerings in partnership with non-financial players. More importantly, the bank can operate more smoothly, the report said. “The lifting of the ban would also allow the bank to smooth out business-as-usual initiatives, rather than having to seek clarity from RBI when in doubt.”
This post HDFC Bank Post-Embargo Plans: All-in-one Payment App, Digital Credit Cards, DIY Merchant Solution was original published at “https://www.financialexpress.com/industry/banking-finance/hdfc-banks-post-embargo-plans-all-in-one-payments-app-digital-credit-cards-diy-solution-for-merchants/2462079/”