Just about a year ago, the Reserve Bank of India (RBI) gave a shot in the arm to India’s already booming digital payments ecosystem. It allowed banks to extend a pre-sanctioned credit line to its customers through the National Payments Corporation of India’s (NPCI) Unified Payments Interface (UPI). A year on, the shot has provided limited stimulus. And standing in its way is NPCI’s own RuPay credit card.
Launched last decade, the RuPay was NPCI’s answer to the market domination of Visa and Mastercard. In 2022, RuPay credit cards were allowed to be linked with UPI. The RBI helped when it prohibited exclusive deals between banks and credit card companies in March this year and said banks would have to offer customers multiple credit card choices. RuPay gained big. RuPay’s rise has been transformative for India’s credit industry and has challenged the global players. But the success of RuPay has placed NPCI’s other creation—the credit line on UPI—at a significant disadvantage.
With RuPay cards linked to UPI, there remains no reason for banks to offer a credit line through UPI and little reason for consumers to use the feature.
RuPay’s Big Bite
The RuPay credit card has seen significant uptake in recent months and especially since the RBI forbade exclusive deals between banks and network credit cards. Since its integration with UPI, the market share of RuPay credit cards has more than tripled from 3% in the 2023 fiscal to 10% in 2024, according to an estimate by fintech start-up Kiwi. Currently, around 30% of newly issued credit cards in India are on the RuPay network, up from just 5% in the 2023 fiscal.
Denne historien er fra September 2024-utgaven av Outlook Business.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent ? Logg på
Denne historien er fra September 2024-utgaven av Outlook Business.
Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.
Allerede abonnent? Logg på
'Automation is Redefining Efficiency and Precision in Jewellery Manufacturing'
Increasing brand consciousness and awareness among consumers is helping expand the organised jewellery retail industry. MP Ahammed, chairman of Malabar Group, discusses prominent trends in the jewellery industry
BATTLE TO WIN THE AI RACE
In Supremacy, Parmy Olson tells the astonishing and behind-the-scenes story of the battle between the world’s two leading artificial intelligence firms, OpenAl and DeepMind and the continuing rivalry of its founders Sam Altman and Demis Hassabis respectively
A LEADER WHO EMPOWERS
Anshul Arzare, MD and CEO of YES SECURITIES, wants to ensure a workplace where employees not only contribute to the company's vision but also feel content
EV Unplugged
Electric vehicles are crucial to India’s climate change plan. But reliance on China for imports and technology constraints remain hurdles the sector needs to overcome
Every Lamborghini Owner is a Brand Ambassador
Regional director of Automobili Lamborghini, Francesco Scardaoni, talks to Prachi Khanna about the brand’s approach to fostering a sense of community among its vehicle owners. Edited excerpts
NO ZEST FOR ZED
A government initiative to green MSMEs is not finding enough takers
SMALL PLANTS, BIG TROUBLE
Climate-triggered stress is placing an unprecedented burden on small businesses. But a lack of access to climate aid hinders the sector's ability to adopt greener methods
'We Think About the Rider More Than Any Other Company
Rapido co-founder Aravind Sanka talks to Neeraj Thakur and Deepsekhar Choudhury about how flexibility and fair pay helped his company disrupt the Ola-Uber duopoly. Edited excerpts
LABOUR PANGS
Rising cost of living in a fast-growing economy is making workers restless
'Hustle is No Virtue'
It has become fashionable to talk about the verb “hustle” these days, especially in professional settings.
