The launch if the RuPay card from the National Payments Corporation of India (NPCI) have raised the question on how is it different from the Visa Debit Card, MasterCard and AmEx etc., for many individuals.
RuPay is India's own domestic card with own payment gateway that is beneficial for banks and customers. It is an approved card payment network like MasterCard and VISA.
"RuPay" is the coinage of two terms Rupee and Payment. We all have been using different types of cards till now. Now let us understand the difference between RuPay and Visa Debit Card.
|RuPay Card||Visa Debit Card|
|Processing Fee||As it is a domestic product, this will make the transaction cost affordable and will drive usage of cards in the industry.||Processing takes place in a foreign country which involves higher fee and cost.|
|Speedy Transaction||Processing happens within India and transactions are much faster.||Processing will take time compared to RuPay Card as it happens at international level.|
|Domestic or international ||As of now, these cards are accepted only domestically.||Visa debit cards can be used internationally anywhere.|
|Fee Structure||Banks need not pay a quarterly fee or entry fee to join the network.||Banks need to pay quarterly and fee to enter with the respective network.|
|Card||As of now, it offers only debit card with online transaction.||Visa and Mastercard offer debit and credit cards.|
|Safety||Transaction data would be available in India and thus prevent customer purchase data going out of the country.||Transaction and customer data related to RuPay card transactions should be shared with international payment gateway.|
Which is better RuPay Card or Debit card?
Right pricing of RuPay products would make the cards economically feasible for banks to offer to their customers even to the under-penetrated or untapped consumers segments in rural areas.
Using RuPay Card will be beneficial to the Indian economy and the banking system. NPCI is striving to take the card to an international level.
Further, RuPay is well poised to explore innovative payment opportunities such as Contactless to facilitate and increase the efficiency for creating small ticket payments electronically.
RuPay is well poised to support an issuance of debit and prepaid cards by banks in India and thereby supporting the growth of retail electronic payments in India.
At the moment, Rupay has to still capture a share of the market and also greater acceptability at outlets. We believe that this could happen provided there is some aggressive strategy by the company. Given that it Rupay Could provided some cost advantages as compared to the visa card, it may not be too difficult for the company to make a penetration. Probably, it is just a matter of time when it would start giving competition to the other two leaders.