Demand for RuPay credit cards surpasses Visa & Mastercard on Tier 2, 3, 4 cities

[Abhishek012]

Demand for RuPay credit cards surpasses Visa and Mastercard on Tier 2, 3, 4 cities:

According to report by ZET, among the banks distributing RuPay cards, the most preferred were Axis Bank, HDFC Bank and SBI

UPI integration has resulted in an uptick in demand for RuPay credit cards in India’s Tier-2, 3 and 4 towns and cities, reports a latest consumer study by ZET (previously OneCode), a fintech platform with the 1.5 million agents for financial distribution. The report suggests the percentage of RuPay cards issued through the platform during the April-June quarter stood at 29 per cent while Mastercard and Visa were almost on par with 36 per cent and 35 per cent respectively. However, in the following quarter the demand for RuPay cards surpassed those for Visa and Mastercard. Demand for RuPay credit cards went up by 37 per cent (QoQ) in the July-September quarter across India’s 706 small towns and cities.

Among the banks distributing RuPay cards, the most preferred were Axis Bank, HDFC Bank and SBI.

The demand for RuPay credit cards has been growing steadily every quarter. During the April-June quarter this demand went up by 23 per cent (QoQ). The top-10 cities that witnessed the maximum demand for RuPay cards during July-September quarter were Jaipur, Meerut, Surat, Nagpur, Ranchi, Raipur, Varanasi, Indore, Kanpur, and Jhansi.

Manish Shara, Co-Founder and CEO, ZET said “Ever since the integration with UPI, RuPay credit cards are witnessing a rise in demand for RuPay cards across India’s Tier-2, 3 and 4 towns and cities. Almost 37 per cent of the cards issued through the platform in India’s hinterland during the July-September quarter were for RuPay cards followed by Mastercard (32 per cent) and Visa (31 per cent). This highlights the increasing popularity of digital payments in the country that has now expanded to India’s hinterlands as well. This augurs well for the larger ecosystem as we move towards a digital economy.”

With over 55 partner brands such as SBI, HDFC, Axis Bank and others, ZET has seen a 4x increase in the monthly income of its agents. ZET has been successful in removing the dependency on direct selling agents (DSAs), and bringing transparency in processes.

 

[CardCraftsman.]

Bhai ke ghar pe party h is khusi ke news par. Access keliye sab apne rupay card leke aana. Khana me mastecard, visa, amex etc milega.

 

[sxchzy]

yeh to hona hi tha
sabko jab pata chal gaya
sabne tier 2 me ek merchant qr khola aur paisa ghumana shuru

 

[shsinha]

I was expecting this. Rupay will give VC/MC some serious competition. They have to raise the benefits.

 

[sxchzy]

I was expecting this. Rupay will give VC/MC some serious competition. They have to raise the benefits.

not sustainable by rupay
mdr has to kick in otherwise mdr loss is very huge

 

[tdot]

While this maybe true but without context it’s pointless. As someone already pointed out it would be difficult for Rupay to sustain this growth without increase in MDR. Secondly, banks are pushing this product for business and government pressure. When applying for credit card your average consumer is happy to take whatever bank offers him and least bothered about Visa/Mc.

 

[shsinha]

MDR will be increased but it will be lesser than VC/MC...

 

[bsc0008]

HDFC already started collecting MDR for payments made using Rupay credit cards on their merchant platform SmartHub Vyapar when settling. So next others will also start soon. Otherwise it's not a sustainable strategy for banks as well as the government.
Edit:

 

[Abhishek012]

not sustainable by rupay
mdr has to kick in otherwise mdr loss is very huge

MDR is same for all RuPay/Visa/Mastercard credit cards.

Don't know why or who gives such fake information.

Growup guys.

Another fake information spread everywhere - NPCI/RuPay is a govt company, which is also wrong info.

NPCI/RuPay is a private company and indirectly controlled by Indian govt. Similar to Visa and Mastercard.

Visa and Mastercard is a private company and indirectly controlled by US govt.

Last thing, Like the Indian govt, Did the US govt also spend taxpayers' money on Visa and MasterCard ?

Yes, in the initial days the US govt also did the same thing which the Indian govt is doing now.

However, US and India both are different country, different requirement. So, a lot of things are different and many things have been improved which are not seen in Visa and MasterCard.

@tdot
@bsc0008
@shsinha

 

[bsc0008]

Another fake information spread everywhere - NPCI/RuPay is a govt company, which is also wrong info.

NPCI/RuPay is a private company and indirectly controlled by Indian govt. Similar to Visa and Mastercard.

NPCI/Rupay is not a private company. It's founded by RBI and other consortium of private/public sector banks. Maybe it works separately from the government but it's not away from the influence of the government (similar to OMC deciding the fuel prices with elections in mind).

I'm not against Rupay or against the various provisions made by government for promoting it. Those provisions are needed to overcome the strong influence of VISA/MC. But at the same time we shouldn't act like that there is no intervention from government with matters concerning Rupay or UPI.

 

[Abhishek012]

NPCI/Rupay is not a private company. It's founded by RBI and other consortium of private/public sector banks. Maybe it works separately from the government but it's not away from the influence of the government (similar to OMC deciding the fuel prices with elections in mind). I'm not against Rupay or against the various provisions made by government for promoting it. Those provisions are needed to overcome the strong influence of VISA/MC. But at the same time we shouldn't act like that there is no intervention from government with matters concerning Rupay or UPI.

NPCI/RuPay is a 100% private company. Indian PSU bank, Indian Private banks and foreign banks are the owner of NPCI, including Amazon, Paytm, Walmart, Sodexo, Mobikwik etc (yes, these startup companies and American Ecom companies also owned few % shared in NPCI).

RBI has no role in NPCI but yes, the idea of NPCI or Indian Payment System came from RBI and Indian Govt.

Similar to the idea of visa/mastercard also came from US Federal bank, US banks and US govt. US Federal bank and US govt has huge influence in VISA/MC.

Now the most important point -

you may heard this thing many times but this statement is incorrect - RuPay card is not growing because banks don't want to issue RuPay card, which is wrong info.

The real and ugly truth is that "Indian govt does not want RuPay to grow and gain bigger market share".

Now you guys will say, bhai kuch bhi bol rahe ho ? kuch bhi ?

But this is true.

NPCI/RuPay was created to help poor Indian people and middle class people. Also help small banks, startup companies and increase digital payment in tier 2, 3, 4, 5 cities or villages etc.

Actually govt asked help from visa/mastercard but they refused for jandhan yojana card and kisan card.

There are clear instructions from RBI and govt to NPCI, create innovation thats help poor and middle class people, launch more govt schemes cards and issue cards to tier 2, 3, 4, 5 cities or villages etc and do other thing that help poor and middle class people.

NPCI was create a non-profit org. So, shareholders are currently get nothing from NPCI.

NPCI CEO told many times, once NPCI turn into for-profit org. Shareholder banks, startup companies etc will get dividend from NPCI and banks will promote more NPCI products.

You may have heard about the 'US lobby', How Visa/Mastercard has huge influence in the US Congress and US banks. This is because US banks owned Visa/Mastercard.

Similar thing will happen in India. When Indian govt/RBI will turn NPCI into for-profit company. You will keep asking for Visa/MasterCard from the Indian bank but the bank will issue you RuPay cards because the Indian bank will benefit from this.

Ofcourse, it will take few decades, once RuPay and UPI will expand to almost all countries + digital payment will expand to every corner of the country.

@xywowowvw
@tdot
@bsc0008
@shsinha

 

[sxchzy]

MDR is same for all RuPay/Visa/Mastercard credit cards.

Don't know why or who gives such fake information.

Growup guys.

Another fake information spread everywhere - NPCI/RuPay is a govt company, which is also wrong info.

NPCI/RuPay is a private company and indirectly controlled by Indian govt. Similar to Visa and Mastercard.

Visa and Mastercard is a private company and indirectly controlled by US govt.

Last thing, Like the Indian govt, Did the US govt also spend taxpayers' money on Visa and MasterCard ?

Yes, in the initial days the US govt also did the same thing which the Indian govt is doing now.

However, US and India both are different country, different requirement. So, a lot of things are different and many things have been improved which are not seen in Visa and MasterCard.

@tdot
@bsc0008
@shsinha

The National Payments Corporation of India (NPCI) serves as an umbrella body for the operation of retail payment in India. This organization was established by the Reserve Bank of India along with the Indian Bank’s Association. NPCI was incorporated in December 2008 and was centrally promoted by the Reserve Bank of India. The Certificate of Commencement of Business was issued in April 2009.
directly or indirectly it is onwed by govt and banks
now mdr is being borne by the banks and they are losing money there
kuch bada ghata nahi hua par yeh money making banana chahte hai
par govt ka digital transformation plan ke wajah se losses le rahe hai

 

[Abhishek012]

The National Payments Corporation of India (NPCI) serves as an umbrella body for the operation of retail payment in India. This organization was established by the Reserve Bank of India along with the Indian Bank’s Association. NPCI was incorporated in December 2008 and was centrally promoted by the Reserve Bank of India. The Certificate of Commencement of Business was issued in April 2009.
directly or indirectly it is onwed by govt and banks
now mdr is being borne by the banks and they are losing money there
kuch bada ghata nahi hua par yeh money making banana chahte hai
par govt ka digital transformation plan ke wajah se losses le rahe hai

Yes, Indirectly it is owned by the govt but NPCI is a private company.

What difference does it make ?

In future, Govt will lose control on NPCI. Once NPCI will become big org, one day NPCI will control Indian govt

that's why RBI always said about NPCI - "too big too fail" and RBI want NPCI like more entity. The real truth is that NPCI will never fail, RBI/Govt will lose control on NPCI.

Bank ko koi ghata nahi hua hai, ulta profit hote hai, new customers judte hai. Inter bank transfer costly hote hai, NPCI owner banks bas thora sa money invest karte hai NPCI me aur big chunk of money save kar lete hai.

Waise bhi NPCI ko profit he hota hai, last financial year NPCI earn profit Rs 773.4 crore (84.4% increase from previous financial year).

 

[sxchzy]

Yes, Indirectly it is owned by the govt but NPCI is a private company.

What difference does it make ?

In future, Govt will lose control on NPCI. Once NPCI will become big org, one day NPCI will control Indian govt

that's why RBI always said about NPCI - "too big too fail" and RBI want NPCI like more entity. The real truth is that NPCI will never fail, RBI/Govt will lose control on NPCI.

Bank ko koi ghata nahi hua hai, ulta profit hote hai, new customers judte hai. Inter bank transfer costly hote hai, NPCI owner banks bas thora sa money invest karte hai NPCI me aur big chunk of money save kar lete hai.

Waise bhi NPCI ko profit he hota hai, last financial year NPCI earn profit Rs 773.4 crore (84.4% increase from previous financial year).

how are they making profit from rupay
if majority of transactions are being done on upi where mdr is still being implemented
agar govt re emburse kar rahi hai to alag baat hai

 

[Deleted member 5552]

 

[Deleted member 5552]

how are they making profit from rupay
if majority of transactions are being done on upi where mdr is still being implemented
agar govt re emburse kar rahi hai to alag baat hai

RuPay is running with the support of Government... Owned and regulated by govt only... Govt spends lot of money to promote RuPay cards....

 

[Abhishek012]

RuPay is running with the support of Government... Owned and regulated by govt only... Govt spends lot of money to promote RuPay cards....

Where you got this info ? Wikipedia ? LOL

Wikipedia is open source encyclopedia, anyone can edit and add anything.

Do you know more than 50% of the RuPay card info in wikipedia added by me - https://en.wikipedia.org/wiki/RuPay

I have added 20% to 30% info about UPI in Wikipedia - https://en.wikipedia.org/wiki/Unified_Payments_Interface

Recently someone edited the RuPay card launch year and change 2012 to May 2014 in Wikipedia (when BJP govt came to power), Check it out yourself.

Neither RBI or Govt owns NPCI.

NPCI shareholders list here - https://www.npci.org.in/PDF/npci/corporate-governance/shareholding-pattern.pdf

Major banks like SBI, HDFC, ICICI, BOB, PNB, Canara, Union bank, BOI, HSBC, Citi Bank, Axis bank etc decide everything on NPCI.

 

[rogerthat]

To provide level playing field the govt should also allow Visa/MC to be linked with UPI for payment... Now it is like RuPay has a monopoly.

 

[Abhishek012]

To provide level playing field the govt should also allow Visa/MC to be linked with UPI for payment... Now it is like RuPay has a monopoly.

Presently, Visa/MC is not interested to link with UPI.

Visa/MC and UPI both are rival companies. Why Visa/MC allow to link with UPI lose their revenue and profit ?

UPI have their own payment and settlement system.

If Visa/MC will allow to link with UPI then other countries will also see this an opportunity to bypass Visa/MC network. Which is not good for Visa/MC in the long run.

 

[simplegarv]

Demand for RuPay credit cards surpasses Visa and Mastercard on Tier 2, 3, 4 cities:

According to report by ZET, among the banks distributing RuPay cards, the most preferred were Axis Bank, HDFC Bank and SBI

UPI integration has resulted in an uptick in demand for RuPay credit cards in India’s Tier-2, 3 and 4 towns and cities, reports a latest consumer study by ZET (previously OneCode), a fintech platform with the 1.5 million agents for financial distribution. The report suggests the percentage of RuPay cards issued through the platform during the April-June quarter stood at 29 per cent while Mastercard and Visa were almost on par with 36 per cent and 35 per cent respectively. However, in the following quarter the demand for RuPay cards surpassed those for Visa and Mastercard. Demand for RuPay credit cards went up by 37 per cent (QoQ) in the July-September quarter across India’s 706 small towns and cities.

Among the banks distributing RuPay cards, the most preferred were Axis Bank, HDFC Bank and SBI.

The demand for RuPay credit cards has been growing steadily every quarter. During the April-June quarter this demand went up by 23 per cent (QoQ). The top-10 cities that witnessed the maximum demand for RuPay cards during July-September quarter were Jaipur, Meerut, Surat, Nagpur, Ranchi, Raipur, Varanasi, Indore, Kanpur, and Jhansi.

Manish Shara, Co-Founder and CEO, ZET said “Ever since the integration with UPI, RuPay credit cards are witnessing a rise in demand for RuPay cards across India’s Tier-2, 3 and 4 towns and cities. Almost 37 per cent of the cards issued through the platform in India’s hinterland during the July-September quarter were for RuPay cards followed by Mastercard (32 per cent) and Visa (31 per cent). This highlights the increasing popularity of digital payments in the country that has now expanded to India’s hinterlands as well. This augurs well for the larger ecosystem as we move towards a digital economy.”

With over 55 partner brands such as SBI, HDFC, Axis Bank and others, ZET has seen a 4x increase in the monthly income of its agents. ZET has been successful in removing the dependency on direct selling agents (DSAs), and bringing transparency in processes.

The time has come when "The People of Bharat" will only be using our indigenous payments method and no doubt it's by far the best and ahead of the competition. Linking CC with the UPI will prove to provide a multiple fold of growth to UPI.