HDFC Plans To Integrate Digital Payments Into Swipe Machines

HDFC Bank, one of the largest players in payments and retail lending space, is planning to expand its business horizons and integrate digital payments into 4.2 lakh card swipe machines and it is using its technology backbone to provide instant consumer loans to online shoppers.

Digital Payments such as as UPI, e-wallets and BharatQR will be used for the swipe machines.

The bank will tie up with online merchants and provide loans to those who are either shopping online or browsing. The bank has developed the ability to provide instant loans even to non-customers of the bank by using technology.

The bank's software enables it instantly appraise a prospect by pulling down social and credit scores through application programming interfaces (APIs). It simultaneously does deep analytics to de-duplicate and instantly approves loans from Rs 50,000 to Rs 5 lakh.

Sources said that the bank, which began retail automated loans with internal customers, has now built on the capability. The same capability can be used for giving online instant lines of credit backed with physical cards depending on whether the customer needs.

On the payment side, instead of pushing mobile-based applications for shopkeepers, the bank is rejigging its point of sales (PoS) terminals so that all digital payments can be made possible.