How RuPay is competing VISA / MasterCard ?

[cardbhai]

RuPay has 180 mn PMJDY accounts and 85 mn are for mainstream customers. Visa and MasterCard had 53 banks on offer a couple of years ago; RuPay serves 618 banks including all Regional Rural Banks (RRBs) and small private banks. Working with co-operative banks is not necessarily profitable but the idea is to create universalization.

In three years, RuPay getting 38% market share is commendable, for unlike China, India is an open market. From 1998 to 2015, China barred MasterCard and Visa while in India, NPCI has had to compete on service. RuPay does not intend to go global.

RuPay is acceptable at 100% of the ATMs, at all POSs except HSBC’s and it is also acceptable across e-commerce platforms. Banks have their own concerns regarding the branding of RuPay. RuPay will do credit card interchange (65 bps) for commercial payments; for peer to peer remittances, the charge is a flat fee structure. RuPay has tied up with Discovers and Diners globally for its international cards which means that around 70% of all POS terminals can honor a RuPay international card.

[Hina Williams]

First of all, whats RuPay? In 2012, India came up with its own payment gateway system called RuPay. Launched by the National Payments Corporation of India (NPCI), RuPay was an answer to the dominant foreign players, MasterCard, Visa and American Express.
This domestic plastic card was launched with the intention to merge payment systems within the country. It was brought to life in order to realise the RBI’s yearning for a domestic payment system with an open loop and multilateral approach. It was post demonetisation that we saw a sudden rise in the use of RuPay Credit Cards and Debit Cards at point-of-sale (PoS) terminals at various merchant outlets in India.

Here's a list of benefits which gave sudden growth in RuPay cards utilization:

• Less dependence on cash: The adoption to cashless systems such as Debit Cards, Credit Cards or mobile wallets was found easier to manage money.
• Cost-effective: Compared to other payment systems, the transaction costs involved with RuPay cards are significantly lower.
• Fast Transactions: Since all the transactions made with a RuPay card are processed within the country itself, the transactions are much faster than others
• Financial Inclusion: These cards were introduced as a measure to drive financial inclusion by involving all the economic classes within the country.
• Information Sharing: The Data of Indian users is safe and secure with RuPay cards. While for other cards, its usually shared on an international level
• Alerts: For every transaction you make using your RuPay card, you’ll get an SMS notification.