In the era where the e-commerce is flourishing, State Bank of India has tied-up with PayPal into a strategic partnership to encourage across the border trade and simplify the payments for SBI and PayPal users both in India and abroad. It has also teamed up with India’s top eCommerce player Snapdeal and signed a memorandum of understanding with e-commerce giant Amazon to provide payment solution for the customers and sellers.
The partnership with PayPal, which is part of eBay Inc, is to provide trouble-free banking services to India’s foreign trades, said Sriram, MD and group executive of State Bank of India. This digital payment solutions will assist the bank’s small and medium scale clients to purchase from overseas market. Also, it allows the SBI debit card holders to buy online from international websites.
“It provides a perfect opportunity to both of us to collaborate and offer a wide gamut of customized financial solutions to merchants across the board. This would bring new opportunities for our SME customer base,” said B.Sriram. Vikram Narayan, managing director and Country manager of PayPal added, “Paypal has a strong role to play in the ‘Make in India’ initiative. Collaborating with us gives SBI’s customers global access to businesses and consumers alike.” Also, this teaming up will help non-residents of India to fund money to facilitate government’s social projects such as clean Ganga movement or Swachh Bharat.
Apart from this, the agreement with Snapdeal will offer SBI to launch capital assistance program for the vendors who are using Snapdeal to sell their products. If the products are available on the Snapdeal website, the manufacturers would get a collateral-free loan of Rs.1 crore, sellers or vendors would get Rs.25 lakh. Women entrepreneurs will get a discount of 0.25% on loan interest rates. The online platform is working on to increase its vendors from 150,000 to 1 million, currently.
Chairperson of SBI, Arundhati Bhattacharya said, “The bank would offer interest rates between 11.35% to 13.35% to SMEs under the scheme and offer concession of 50-100 basis points on additional collateral.” She also added, “This kind of arrangement helps in NPA management through better marketability of the products. We are using different platforms to give loans, catering to the SMEs which sell, which have the ability to produce better quality products.”
“It is expected that by 20025, the spending in emerging markets will reach $30 trillion. We see the partnership with SBI as a long-term strategy,” said Narayan of PayPal.