State Bank of India, the Indian multinational, public sector banking and financial services company announced a joint venture with payments solution provider Hitachi Payment Services India for the establishment of the latest card acceptance and future-ready digital payment platform for India.
SBI will hold the majority of stake in this JV, the bank said in a release.
The JV will provide various payment options to customers and merchants focusing on areas such as rollout of a nationwide card acceptance infrastructure, quick response (QR) code acceptance, Unified Payment Interface (UPI), mass transit sector and e-commerce businesses, it said.
Rajnish Kumar, Chairman, SBI said, “At 2,500 PoS per million people, the penetration of payment acceptance infrastructure is still low. With this JV, we aim to grow the payment landscape by providing a frictionless modern digital payment platform to our customers.
“In Hitachi Payment, 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. SBI also believes that the future of the payment services lies in the capability of the JV to develop new digital acquiring strategies for the benefit of its consumers.”
Hitachi India’s managing director, Bharat Kaushal, said, “This mutually benefiting partnership with the financial giant SBI will allow us to widen our footprint pan India.”
Toshiaki Higashihara, President & CEO of Hitachi Ltd, Japan; said, “…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.”
The JV agreement is subject to all requisite regulatory approvals, the bank said in a BSE filing.
Hitachi Payment Services India is a wholly owned subsidiary of Hitachi Group, Japan.
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