Hitachi and India’s Largest Gov’t-Owned Bank Partner on Major Digital Payments Platform
Hitachi Payments has collaborated with the State Bank of India (SBI) to build a nationwide digital payments podium, as per the press release issued by Hitachi Oct. 29.
Under the guidance of the government’s “Digital India” campaign, Hitachi will offer SBI with solutions comprises its Internet-of-Things (IoT) podium “Lumada,” which was implemented as the base podium for a major blockchain proof-of-concept (PoC) for supply chain management undertaken with Japan’s Mizuho Financial Group last year.
Hitachi Payments is a wholly-governed subsidiary in India of multinational tech conglomerate Hitachi, which offers technology-led payment solutions for financial institutions. It allegedly has 55,000 ATMs and 850,000 point of sale (POS) devices (including mobile POS) under supervision in India.
Indian government-directed SBI is the biggest commercial bank in the country, with 23 percent market share of possessions and one quarter of the total deposits and loan market. As per the press release, it assists over 420 million customers and manages over 6,00,000 POS terminals.
The Hitachi Payments-SBI joint venture is pitched as a bid to expand the “digitalization” of financial services in India by connecting Lumada and other cutting-edge technological solutions in order to grow the digital service business in the country. Hitachi Payments has apparently been providing services for SBI’s digital payment acceptance network as of 2011.
Through the new partnership, Hitachi Payments is set to invest 26 percent in SBI’s subsidiary SBI Payments, which is described as India’s “largest merchant acquirer in the market in terms of [POS] terminals.”
As earlier reported, SBI has been creating a blockchain solution for directing know-your-customer (KYC) protocols since November 2017, and was also a founding member of the blockchain for banking research consortium “BankChain.”
As of February 2017, the conglomerate has been operating with blockchain development firm Tech Bureau to integrate a NEM-powered podium into Hitachi’s point management system for merchants, “PointInfinity.” The latter entails a POS software solution for loyalty programs that is supposed used by over 150 million members in Japan.