Global payments technology company Visa has enrolled Paytm Payments Bank into its card issuing and payments network, Economic Times reported. Paytm is in talks to start issuing Visa-branded debit cards as well. This move could help the US-based multinational get large, unorganised merchants into its fold.
Alfred F. Kelly, CEO of Visa, said in a recent call with analysts that they are working with Paytm Payments Bank “to offer our debit credential solutions to enhance their offerings to their rapidly expanding customer base.”
Visa could leverage Paytm’s plans to grow the card payments market in India through this partnership, Kelly said.
“PayTM Payments Bank has formally joined the Visa network as a member and will soon be able to issue Visa cards in the market. Separately, in line with our combined strategy to expand the contactless card acceptance network in India, PayTM is also in the process of enabling merchants on the PayTM network to start accepting contactless card payments,” said T R Ramachandran, Visa’s group country manager for India and South Asia.
Paytm Bank has been offering digital debit cards to all those who had opened accounts, but physical cards were issued only on request. Paytm Payments Bank will continue to issue RuPay cards to customers.
Currently, Paytm Payments Bank has 44 million virtual savings accounts.