Rupay Card: Will it substitute Visa and MasterCard?

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Rupay Card: Will it substitute Visa and MasterCard?
RuPay, is a new card payment mechanism launched by the National Payments Corporation of India (NPCI). "RuPay" is the coinage of two terms Rupee and Payment. The RuPay Visual Identity is a modern and dynamic unit.

RuPay will help you, use your card in the same manner as you use your Master and Visa debit and Credit Cards. The launch of this card will reduce the use of Mastercard and Visa and benefit Indian banks which will reduce the annual transaction fees.

For RuPay, there will be no one time joining fee, and other charges would be around 40% less.

Benefits of Rupay card

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.

Customized product offering

RuPay, being a domestic scheme is committed towards development of customized product and service offerings for Indian consumers.

Protection of information related to Indian consumers

Transaction and customer data related to RuPay card transactions will reside in India.

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.

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.

Source: NPCI

Read more about: rupay, debit card, mastercard
Story first published: Saturday, April 20, 2013, 12:41 [IST]
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