Karnataka Bank (the Bank) has entered into a strategic partnership with Pine Labs Ltd (Pine Labs) to provide point-of-sale (PoS) services to its customers. The collaboration is intended to strengthen digital payment options and broaden acceptance infrastructure across the Bank's network. The tie up follows the Bank's stated objective of becoming the digital bank of the future and forms part of its broader retail and transaction banking strategy.

Pine Labs will supply next generation PoS terminals and related merchant services to enable seamless electronic payments at merchant locations served by the Bank. The solutions are designed to be user friendly and reliable and to support retail merchants and micro, small and medium enterprise (MSME) customers in adopting digital payments. The arrangement is expected to simplify payment collection and reduce cash handling for merchant partners.

The Bank's managing director and chief executive officer, Raghavendra S Bhat, set out that the partnership aligns with the institution's digital ambitions and will help drive mutual growth. The chief operating officer, Raja B S, indicated that the Bank will roll out the service at branches across the country and promote uptake among existing customers. Executives said the collaboration aims to combine the Bank's branch network and customer relationships with Pine Labs' technology.

The deployment will support merchants who wish to accept cards and other electronic payment methods and is intended to increase convenience for consumers. The Bank will offer training and onboarding support for merchant partners to accelerate adoption of PoS solutions. The partnership is presented as a step towards strengthening the digital payments ecosystem and enhancing the Bank's service proposition for retail and MSME segments.