HPCL, ICICI Bank collaborates for fuel payments

• ByStartupStory     |    September 25, 2021

Hindustan Petroleum Corporation Limited (HPCL) is collaborating with ICICI Bank, to allow customers to use their ICICI Bank FASTag to pay for fuel and lubricants at HPCL retail outlets. This alliance is an initiative towards the Digital India movement and to make monetary transactions seamless and is expected to ensure a quick, hassle-free, and contactless digital payment experience for customers. ICICI Bank FASTag commercial vehicle users will enjoy the convenience of having one tag for fuel, toll & parking payments.

This facility is now available through HP Pay App for all customers. With this venture, HPCL has become the first Oil Marketing Company to integrate payment systems with FASTag. Earlier, HPCL had enabled fleet customers payment through the HPCL DriveTrack Plus terminal, with IDFC Bank FASTag to make digital payments easy.

FASTag allows people to drive through the FASTag lanes without having to stop to pay the toll taxes as charges are deducted from the prepaid or bank account. Users can simply recharge their FASTag and pass through toll plazas without stopping.

Partnering with ICICI bank, which has a 37 percent market share in the new FASTag technology, is expected to lead to a stream of customers for all 19,000 HCPL outlets acrooss India.  Reportedly, integration of HPCL’s Drive Track Plus loyalty programme with ICICI Bank FASTag is also in progress.

HPCL has proposed to commission 5,000 electric vehicle (EV) charging stations in the next three years and has partnered with various companies for this purpose. Over the past few months, HPCL has tied up with three entities–Convergence Energy Services Ltd (CESL), Tata Power, and Magenta EV Systems–for setting up charging infrastructure at its retail outlets.

FASTag carries out electronic tolling and other ancillary projects of NHAI. National Payments Corporation of India (NPCI), Indian Highways Management Company Limited (IHMCL), and NHAI are working together to make state and national highway toll payments completely digital. 

It is a rechargeable tag that makes use of Radio-Frequency Identification (RFID) technology to ensure that the relevant charges are automatically deducted from the user’s prepaid or bank account. The tag is now mandatory for toll collection for all vehicles and accounts for approximately Rs 2,500 crore per month.

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