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HDFC Bank to grant virtual accounts to PayZapp users

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HDFC BankPrivate lender HDFC Bank is all set to offer digital bank accounts, credit cards and instant loans to the users of its PayZapp app users. It has also planned to recruit additional merchants for enabling acceptance of electronic payments, in a bid to inflate its present network of 1.2 million shops to five million in a span of 18 months.

PayZapp has 14 million users within two years of its operational presence. Over half of these are young users who do not have a bank account. “We are marrying a lot of our strategies by integrating changes that are happening in the market into our own business activity.HDFC Bank is already a scale player in cards and loan assets. We will use our digital back-end strengths in these businesses to bring more scale into PayZapp,” said Parag Rao, group head for marketing, credit cards and payments business.

He further said that PayZapp has the potential to make it big and reach a 50 million customer franchise base by offering instant accounts, credit cards and loans.

HDFC Bank is a leader in the credit cards’ domain with more than one crore cards in circulation. Currently, the bank issues 2.5 lakh new cards every month. PayZapp is expected to lead the figure to five lakh cards per months.

The new account and the credit card will be completely digital and the users will be provided with an option to receive the plastic version. The instant loans would be powered by fintech (financial technology). “Fintech lending is the new kid on the block, which has brought a different way of sourcing customers for loans,” said Rao.

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