Visa, a leader in digital payments, has entered into a strategic partnership with Hyperface, a Credit Cards-as-a-Service (CCaaS) platform. This collaboration aims to facilitate the digital issuance of Visa credit cards to mid-sized and large businesses, advancing the growth of co-branded credit cards in India.
According to the official release by the company, by the end of 2023, India is projected to have a credit card user base of 100 million. Estimates also show that more than 50 per cent of India's credit-eligible adults currently lack access to formal credit, leaving approximately 160 million consumers underserved.
In this partnership, Visa aims to expand its range of digital-first solutions, enabling banks and merchants within its network to provide comprehensive and robust credit solutions. Furthermore, this collaboration empowers merchants to swiftly launch co-branded credit cards, fostering customer loyalty by leveraging Hyperface's suite of products and partnerships.
Sujai Raina, VP and head of business development at Visa India, stated, "We are pleased to collaborate with Hyperface to provide a superior platform for our issuing clients. It enables the launch of configurable credit card programmes with built-in customisation of benefits and hyper-personalisation capabilities. In a country where the demand for credit and novel experiences is burgeoning, we are confident that this partnership will play a pivotal role in expanding credit access and boosting credit card usage across various segments."
Ramanathan RV, the co-founder & CEO of Hyperface, also added "Hyperface is reimagining the digital experience for credit cards. Visa possesses an extensive distribution network and a profound commitment to technology. This partnership lays a solid foundation for crafting innovative and potent products for Visa's bank and co-brand partners."
Through this collaboration, Visa also aims to enhance end-user experience, create an intuitive onboarding process, and simplify card lifecycle management when accessing credit through partner banks for both customers and businesses.
This announcement comes amid news of Visa and Mastercard adding new card feeds for retailers in October. These interchange fees have reportedly been rising in recent years as more consumers use credit cards, which typically carry higher charges than debit cards. However, Visa and Mastercard have not commented on this to date.