SBI will hold majority stake in the venture. The deal is subject to regulatory approvals.
Hitachi Payments Services provides cash and digital payment solutions to various lenders in India, including the SBI.
India’s largest lender said that the venture will provide payment options to its customers and merchants with help of a nationwide card acceptance infrastructure, quick response (QR) code acceptance, Unified Payment Interface(UPI), mass transit sector and e-commerce businesses.
“At 2500 Point-of-Sales per million people, the penetration of payment acceptance infrastructure is still low. With this venture, we aim to grow the payment landscape by providing a frictionless modern digital payment platform to our customers,” said Rajnish Kumar, chairman, SBI. “In Hitachi Payments, we see a long-term business and technology partner that has the ability, capability and willingness to develop the broad vision of SBI which is tied into the success of the digital payment imperatives of the country.”
“By establishing the joint venture with SBI, Hitachi will further contribute to the development of digital payments in India by building a state-of-the-art digital payments platform and leveraging SBI’s robust customer network,” said Toshiaki Higashihara, president and chief executive officer, Hitachi.
“This mutually benefitting partnership with the financial giant SBI will allow us to widen our footprint pan India,” said Bharat Kaushal, managing director, Hitachi India.