In a bid to boost digital payments, the Indian banking major State Bank of India (SBI) and Hitachi Payment Services, a wholly owned subsidiary of Hitachi Ltd, announced  the launch of merchant acquiring joint venture, SBI Payment Services Pvt. Ltd. (SBIPSPL) in Mumbai on Tuesday, for establishing a state-of-the-art digital payments platform for India and other countries in the region. This Joint Venture will facilitate expansion of the digital payments landscape in India by creating a state-of-the-art digital payments platform that will enable offering of innovative products to suit the requirement of all segment of merchants, leveraging the brand value and unparalleled distribution network of SBI and bringing Artificial Intelligence and other technological capabilities of Hitachi to SBI Payment Services Pvt Ltd (SBIPSPL).

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Speaking on the development Rajnish Kumar, Chairman at State Bank of India told Zee Business Online in a written statement, “Through this Joint Venture, we aim to maintain our position as the top acquirer in the merchant digital payments space by providing technologically superior and seamless services to our customers. We will also utilise business analytics to develop strategies to penetrate into hitherto untouched Indian towns and cities through merchant centric digital payments solutions”. 

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Kenji Hiramatsu, Ambassador of Japan to India said after the launch, “While both Japan and India share a strong relationship, there is a need for further collaboration. Am confident that the largest Bank of India and one of the biggest companies in Japan though this partnership would take digital payments to new heights in the country.” 

Toshiaki Higashihara, President & CEO of Hitachi Ltd, Japan, said “Hitachi’s joint venture with SBI, 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. This coincides with Hitachi’s vision to improve people's lives by providing digital solutions in India and other countries.” 

The official launch was marked at a glittering event at Hotel Trident in Mumbai, attended by His Excellency, Kenji Hiramatsu, Ambassador of Japan to India, Mr. Rajnish Kumar, Chairman, State Bank of India, Mr. Toshiaki Higashihara, President & CEO of Hitachi, Ltd., Mr. P.K.Gupta MD (Retail & Digital Banking), State Bank of India, distinguished customers, partners and other key officials from SBI and Hitachi. 

SBI, as the largest state-owned commercial bank in India, has more than 425 million customers, around 6,00,000 POS terminals, more than 16 lac merchant payment acceptance touch points and has migrated more than 80 per cent of its transactions to alternate delivery channels. The joint venture is expected to take this initiative further. 

Hitachi Payment Services empowers financial institutions with a comprehensive array of technology-led cash and digital payment solutions such as ATM Services, Cash Recycling Machines, POS processing services, Toll & Transit Solutions. It has been providing deployment, technology and management services for the card and digital acceptance payment network of SBI since 2011.