HDFC looks to woo merchants with new app

HDFC Bank has launched an app called "SmartHub Vyapar" in an attempt to cater better to the needs of small and medium business clients.

The launch comes at a time when many smaller merchants are facing payment-related issues and looking for ways to revive their businesses after the pandemic.

For starters, the app allows merchants to get payments from customers through many new modes including Cards – Tap & Pay, UPI and QR code. Merchants can also accept remote payments by sending a payment link over mobile or email.

It also helps them get quick access to pre-approved loans and alerts them of successful transactions. It has also been embedded with a marketing tool that lets merchants broadcast their offers via social media. It also allows merchants to pay their distributors and vendors, and take care of regular payments such as utility bills and GST.

The app was tested across small and medium merchants and distributors across India.

“The maximum positive response has been recorded from merchants in the grocery, healthcare, and restaurant (sectors), where quick payments are done,” a senior HDFC bank executive told DH.

Many industry watchers lauded the move.

“This is a step in the right direction with digital transactions at an all-time high. More

than that, it is a solution tailored to MSME needs, which are different from the retail market.

However, the success of the application will depend on the last mile i.e, branches will play an

important role in that,” said Shravan Shetty, Managing Director, Primus Partners. “One challenge that the banks have been facing is integrating the SMEs with the digital universe.”

The country’s largest private lender has already seen a lot of interest in the app.

“We’ve already generated 460 crores worth of business, 60,000 is the number of merchants we have and we are looking at 1,40,000 customers in the near future,” N Premanand, a zonal head at HDFC Bank, told reporters in Bengaluru on Thursday.

Some others lauded the timing of the launch.

The app “is just the right one coming at the right time when digital payments are at their all-time high,” said Sushma Nayak, a visiting faculty member at the Symbiosis School of Economics. “However, only when the outreach increases and the app is embraced by several merchants over time, we will know if there are any challenges associated with it.”