India's RuPay surges ahead of global giants Visa and MasterCard as State-Owned Banks switch to RuPay

[Chanakya's_Chant]

Government asks PSU banks to issue RuPay debit cards to customers, install POS terminals

For the first time in their 30-year existence, Visa and MasterCard, the world's largest payment companies, are facing the heat in India.

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For the first time in their 30-year existence, Visa and MasterCard, the world's largest payment companies, are facing the heat in India. Lending its weight behind the local card scheme, RuPay, the government has asked state-owned banks to issue RuPay debit cards to customers.

For banks, it's a mandate they will have to fulfil. Within the next six months they will have to offer the new debit card to existing customers, inform thousands of branches and submit progress report to the ministry every quarter.

It's not unusual for countries and governments to support local retail payment networks that offer the software backbone and process card transactions. Countries such as Singapore and Brazil have their local payment companies while China disallows foreign payment firms to process domestic card transactions. But industry sources said an absence of a level playing field may worry global players such as Visa and MasterCard.

For MNC payment firms, the stakes are high. Every year around Rs 80,000 crore worth of debit card spends happen in India, of which 5% are cross-border transactions. It's a market that's growing at close to 35% annually. Credit card transactions, growing at over 25%, are more than two times debit card spends.

Asked whether RuPay would be accepted for transactions such as buying books and music on international e-commerce sites, Hota said NPCI was tying up with the US firm Discover Financial Services to promote co-branded cards to facilitate international transactions.

Read more at:- Government asks PSU banks to issue RuPay debit cards to customers, install POS terminals - The Economic Times

 

[Tshering22]

Good scheme.

We will soon change to our own payment systems and make it globally available.

 

[Contrarian]

This is a good initiative.

 

[$@rJen]

How does it benefits us??

 

[StormShadow]

Wow! Will get one RuPay card and perform all my transactions with that only.

 

[Dem!god]

National Payments Corporation of India

the Indian market offers huge potential for cards penetration despite the challenges. RuPay Cards will address the needs of Indian consumers, merchants and banks. The benefits of RuPay debit card are the flexibility of the product platform, high levels of acceptance and the strength of the RuPay brand-all of which will contribute to an increased product experience.

1. Lower cost and affordability :
   
   Since the transaction processing will happen domestically, it would lead to lower cost of clearing and settlement for each transaction. This will make the transaction cost affordable and will drive usage of cards in the industry.
2. Customized product offering :
   
   RuPay, being a domestic scheme is committed towards development of customized product and service offerings for Indian consumers.
   
   
3. Protection of information related to Indian consumers :
   Transaction and customer data related to RuPay card transactions will reside in India.
4. Provide electronic product options to untapped/unexplored consumer segment :
   
   There are under-penetrated/untapped consumers segments in rural areas that do not have access to banking and financial services. Right pricing of RuPay products would make the RuPay cards more economically feasible for banks to offer to their customers. In addition, relevant product variants would ensure that banks can target the hitherto untapped consumer segments.
5. Inter-operability between payment channels and products :
   
   RuPay card is uniquely positioned to offer complete inter-operability between various payments channels and products. NPCI currently offers varied solutions across platforms including ATMs, mobile technology, cheques etc and is extremely well placed in nurturing RuPay cards across these platforms.

 

[Tshering22]

How does it benefits us??

Secure transactions. Your transactional data remains within India since you are using an Indian payment system.

If shyt hits the fan tomorrow and we are sanctioned like Russia was, our money circulation can't be frozen in non-American banks using Indian payment system.

I think this would be the key benefit apart from financial benefits which I think finance experts here can tell you.

 

[TejasMk3]

I kinda wish we could do something like a homemade internet ecosystem, like a homemade facebook,twitter etc.

The potential to create problems through the current social networks is already huuuuuge. (and has happened)

 

[Sulman Badshah]

Good Initiative by indian govt

 

[Mr.S.Singh]

so basically good for usage in India, but you need a visa/master card when you travel out of India

 

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