RuPay the domestic card payment service provider will be venturing into the credit card space this September after increasing its market share to 38 per cent in the debit card segment. The NPCI plans to issue 100,000 such cards in the first year of its launch.
Initially RuPay will focus on two variants of a credit card — Regular and Platinum — and gradually extend its portfolio to offer co-branded cards. Presently the brand has gained more than a third of market share in total cards and approximately 18% of debit card transactions. It was created to fulfill the RBI desire to have a domestic, open loop, and multilateral system of payments in India.
RuPay is a brand owned and developed by NPCI in 2012 to compete against global payment schemes of the likes of Visa and MasterCard. NPCI was promoted by 10 Indian banks. NPCI is also optimistic about the 11 payments banks and eight small finance banks commencing operations over the next two years helping it further its market share.
From 2017, the target is to issue 500,000 to a million such credit cards every year. The market size of credit cards is presently 22.75 million users and the average value of spending a year is about Rs 2.5 lakh crore.
Extra Info :
NPCI : National Payments Corporation of India
Chief Operating Officer at (NPCI) : Dilip Asbe
So now lets discuss some questions related to this post which can be asked in the upcoming exams :
1. Name the type of card which is going to launch by RuPay in September 2016 ?
2. Expand the term NPCI ?
3. The RuPay is developed by which organisation ?
Courtesy : Business Standard