State Bank of India (SBI) has entered into a definitive agreement with Hitachi Payment Services India to establish a joint venture (JV) focussed on developing a card acceptance and digital payments platform.
The SBI-Hitachi JV agreement is subject to customary regulatory approvals.
SBI, which will hold majority stake in the JV, plans to build on its branch network and alliances to offer a ‘superior’ payment platform in the country.
Under the partnership, the bank will combine its distribution network and customer base with Hitachi’s digital payments technology, services, big data, analytics and artificial intelligence, among others.
The SBI-Hitachi JV will primarily offer a range of payment options, including nationwide card acceptance infrastructure, QR code acceptance, unified payment interface (UPI), mass transit sector and e-commerce businesses.
SBI chairman Rajnish Kumar said: “With this JV, we aim to grow the payment landscape by providing a frictionless modern digital payment platform to our customers.
“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.”
Hitachi Japan president and CEO Toshiaki Higashihara 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.”
Since 2011, Hitachi Payments has been providing deployment, technology and management services for SBI’s card and digital acceptance payment network.