Mumbai: HDFC Bank will soon start offering digital
savings bank accounts
,
credit
cards and instant
loans
to users of its
PayZapp
app. The bank also plans to enrol additional merchants for acceptance of electronic payments to increase its present network of 1.2 million shops to 5 million in 18 months.
PayZapp, which was launched two years ago, has more than 14 million users.
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.
According to Rao, PayZapp has the potential to become a 50-million customer franchise with capability for instantly opening accounts and offering credit cards and loans.
HDFC Bank is already the market leader in credit cards with over 1 crore in circulation. It currently issues 2.5 lakh new cards every month. The PayZapp platform is expected to take this to 5 lakh a month. The offered savings account will be a completely digital product and the credit cards virtual, 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.
On the merchant acquisition side too, the bank’s SmartHub app will play a pivotal role in expanding acceptance to 5 million merchants. The app enables merchants to acquire payments using
BharatQR
, UPI,
e-wallet
or
Aadhaar Pay
.
According to Rao, HDFC Bank aims to be a one-stop shop for solutions to accept different forms of e-payments. The bank will offer merchants acceptance solutions for different form factors and will target early adopters of e-payments. “Early adopters will migrate to savvier and more trustworthy brands that offer all services in one box. A merchant who accepts only QR code today will eventually look at a point of sale machine and will also look for an entity that can provide multiple payment acceptance options,” said Rao.
FAQs
These virtual accounts will be linked to your HDFC bank account. Payment Links: This helps you to receive payments from customers by sending them links via email, SMS, chatbots, and more. These links can be created from the dashboard or API. You just need to enter details like amount, link expiry time, etc.
Is PayZapp real or fake? ›
Yes, PayZapp is incredibly safe. PayZapp logins are secured with PIN and biometrics. Plus, all transactions are password-protected and must be authenticated by the user to prevent unauthorised usage.
Who is eligible for HDFC PayZapp? ›
Is there any eligibility criteria or registration process for the HDFC PayZapp e-wallet app? Any customer that holds an account with HDFC Bank and has either a debit or credit card is eligible to register for the HDFC PayZapp e-wallet app.
What is the benefit of HDFC PayZapp? ›
HDFC Bank's PayZapp offers numerous benefits including payments with a single swipe, assured cashback, UPI payments, the ability to make a multitude of payments and easy money transfers.
What is a virtual account? ›
A Virtual Account consists of a unique customer ID number. It means that there will be no Virtual Account number that is exactly the same. So, each transaction can be identified automatically for different customers. When the transaction is complete, they do not need to send a transfer receipt anymore.
What is the difference between virtual account and normal account? ›
Virtual accounts function similarly to standard bank accounts. They have their own account numbers, streamline incoming and outgoing transactions, and help users maintain their balances. The most notable difference is that virtual accounts cannot actually hold money.
Can I use PayZapp without HDFC account? ›
HDFC Bank has revamped its online payments app, PayZapp. The all-new PayZapp includes features like swipe-to-pay, passbook, timely reminders and money transfer facilities. PayZapp can be accessed by both, HDFC Bank and non-HDFC Bank, customers.
What is the limit of PayZapp? ›
1. Your PayZapp wallet gets upgraded to a full KYC status. 2. Your wallet limit is ₹ 2 lakhs.
Who is the owner of PayZapp? ›
HDFC Bank, one of India's leading private sector banks,has released its one-click payment platform called PayZapp, which is expected to be positioned as an all-in-one mobile payments platform as part of HDFC's 'GoDigital' strategy.
Is PayZapp free? ›
No, PayZapp money transfer charges from your PayZapp wallet to any bank account are 2.5% plus any relevant taxes (18% GST). You can transfer money from your Payzapp account to your bank account after completing your full KYC. Money transfers to the Bank account are not permitted for non-KYC users.
Steps to transfer from payzapp wallet to Account
- Click on Pay/Send money.
- Click on bank icon.
- Enter account name, account number, IFSC code, account type and amount.
- Proceed to payment in one click.
Because virtual accounts don't have a physical existence, they act as doors into your main or physical bank account, where money can pass through when you pay with a virtual account number or someone sends money to your virtual bank account. The funds, however, are stored in your physical account.
What is the difference between a virtual account and a bank transfer? ›
Virtual accounts are different from bank transfers because payments made to virtual accounts are faster, more accessible, and easier to be identified. Since bank transfers provide limited information on the source of funds, customers have to provide proof of payment after the bank transfer is made.
Is virtual account safe? ›
Are virtual accounts safe? Virtual accounts are safe if they follow strict security regulations. They use a variety of methods to protect transactions such as encryption, alerts, multi-step authentication, and secure email protocols.
What is the difference between online banking and virtual banking? ›
Both aim to offer improved convenience, with online banking covering core banking needs over the internet and digital banking expanding this scope with a wider array of features. Keeping this in mind, it might be time to explore the conveniences of managing your finances from the comfort of your own devices.
