In a recent turn of events, HDFC has announced a temporary suspension of their partnership with Apple. The bank is of the view that the cost-to-income measure of the partnership has ceased to align with its objectives. The partnership which lasted for five years, offered exclusive cashback and EMI benefits to customers with HDFC Bank credit cards on Apple products.
Subsequently, Apple has now partnered with banks like American Express, Axis Bank, and ICICI Bank with the same motive. This partnership commenced in the year 2019 and was the standalone partnership that helped Apple in its promotional offers.
In this regard, Parag Rao, Group head of Payments, Consumer Finance, Marketing, and Liability Product Group at HDFC Bank expressed that the bank regularly reviews their partnerships, which led to the bank realising that the cost-to-income measure wasn’t working out for them anymore.
Irrespective of the temporary halt in the partnership, HDFC still holds optimism in its current and upcoming business status. Parag Rao even expressed that the bank is currently in preparation for the upcoming festive season. The bank is anticipating effective growth in deposits, loan disbursals, and card spending.
On the other hand, the bank’s insights state that the performance results from the revamped PayZapp app have been appreciated. The app has about 14 million customers on board. According to Rao, 60% of these customers are HDFC Bank customers.
