The move comes after Paytm announced its entry in to the loan business recently.
Indian e-commerce payment system and financial technology company, Paytm is looking to issue co-branded cards to around 17 million merchants on its platform. The company is in talks with Bank of Baroda, IndusInd Bank, SBI Card and Standard Chartered Bank for the same, according to the sources.
The move comes after Paytm announced its entry in to the loan business recently. It is no secret that the firm has been aiming to foray into “full-fledged financial services players”.
As per the deal, merchants would be able to access new range of Paytm co-branded cards on the app. According to the sources, it would be similar to the fintech firm’s previous offerings. However, the report has not been validated yet.
Usually, such partnerships allow the firms like Paytm to provide the app interface and distribution network. On the other hand, processing costs and value-added services are managed by the banks.
“Looking at prospective co-branded partnerships, but cannot comment on specifics till it is finalised,” said Shailendra Singh, CEO of the non-banking arm of Bank of Baroda while talking about the development.
However, SBI Card, Standard Chartered, IndusInd Bank and Paytm haven’t yet responded to the queries, the sources added.