Showing posts with label master card. Show all posts
Showing posts with label master card. Show all posts

Monday, November 9, 2015

RuPay forces MasterCard to call for fair competition


Facing stiff competition from India's own payment gateway RuPay, MasterCard has called for a level-playing field to stay put in the Indian market.

"It is great that the government is opening up the market. But the market should be driven by competition rather than mandate-driven competition," said Ravinder S Aurora, MasterCard group head and senior vice-president.

RuPay, which is run by the National Payments Corporation of India, gained traction in the local market ever since banks started opening accounts under the Pradhan Mantri Jan Dhan Yojana. 

About 154 million RuPay cards have been issued to new non-frills account holders under the PMJDY programme, to add to the 40 million existing RuPay debit cards with regular bank customers. Ru-Pay, which was conceptualised by the Reserve Bank of India in 2009, has cornered about one-third of the market with a of 580 million. China has a similar indigenous card called the Union Pay of China. 

To thwart competition, Aurora said that MasterCard is focusing on innovation and advanced technology for better security features. Not too long ago, MasterCard and Visa Card were predominant in the Indian market, which is now almost equally shared by RuPay and the two global payment solution providers in terms of number of cards issued. 

Bankers said that issuing RuPay cards is cost-effective for them as the fees associated with it is typically lower than the charges levied by Visa or MasterCard. Aurora said that about 10% of MasterCard's global business comes from India. It had invested $250 million in India last year.

It has tied up with E-lala, the ecommerce portal being promoted by Confederation of All India Traders. 


Wednesday, August 26, 2015

RuPay card to soon overtake Visa-Master cards in India?

  RuPay card to soon overtake Visa-Master cards in India?

RuPay, the foster child of Pradhan Mantri Jan Dhan Yojana (PMDJY), is the new payment getaway card in India breaking the long grip of Visa and Master in the card market. And it only looks to increase over the years.

It is interesting to note that, of the 580 million debit cards used in India, 190 million are said to be RuPay card, a huge achievement for a year old card.

The Jan Dhan Yojana, which was launched by Prime Minister Narendra Modi in August 2014, has over 175 million accounts (17.5 crore) as of August 2015.

While 154 million RuPay cards have been issued to the account holders under the PMJDY, banks are also said to have issued 40 million RuPay debit cards to 'non-jan-dhan' accounts.

Having grown so mcuh within a year, the RuPay card is said to have broken the grip of the Visa-Master grip of the card market.

“Untill one year ago MasterCard and Visa Card were predominant in the market while now RuPay has made a mark and we are hoping to increase its presence further”, AP Hota, MD and CEO, National Payments Corporation of India (NPCI) which runs RuPay to Hindustan Times.

The NPCI is likely to launch RuPay credit cards by March next year, as per report in HT.

Moreover, NPCI is also said to have tied up with Discover Financial Services and Japanese card network JCB for international acceptance of the RuPay cards.

With the increasing credibility and importance of the card, the Indian Railway Catering and Tourism Corporation (IRTCT) has also launched a RuPay pre-paid card which allows passengers to book tickets, pay service bills or shop.