What’s RuPay? We’ll need to wait until March to see it in action, but this interesting new development in the world of payments is worth checking out right now.
The National Payment Corporation of India (NPCI) is about to introduce the RuPay debit card, launching this country’s first domestic card network.
The organization aims to support debit and credit card services on the same level as established players like MasterCard and Visa.
These RuPay cards will be PIN-based, making them more secure than the signature-requiring variety. They’ll come with a magnetic strip that can be swiped for payments.
NPCI says that the new cards will be usable at ATMs all over India. Next month we should see more than 200,000 payment terminals; the figure is projected to be 600,000 by mid 2012.
This brings us to the card’s supporters. State Bank of India is already on board, and NPCI is in talks with providers like ICICI Bank and HDFC Bank.
Things look good for banks too, seeing that RuPay charges should be a lot lower than those associated with the big providers.
In fact, NPCI claims they’ll be close to one-third less. Right now banks are paying an estimated Rs. 300 crore to MasterCard and Visa every year, just to process India’s plastic payments.
The idea is that financial institutions will offer RuPay to their new customers, considering that shifting all accounts at once would be too expensive. Over time, however, as cards come in for renewal, RuPay would be the option offered.
For now, the card will only work domestically, but we might see that change next year. By June, online payments will be possible too.
Along with all this, NPCI has said that there will be no minimum usage volume set, meaning that even small banks can incorporate the offering.
The National Payment Corporation of India (NPCI) is about to introduce the RuPay debit card, launching this country’s first domestic card network.
The organization aims to support debit and credit card services on the same level as established players like MasterCard and Visa.
These RuPay cards will be PIN-based, making them more secure than the signature-requiring variety. They’ll come with a magnetic strip that can be swiped for payments.
NPCI says that the new cards will be usable at ATMs all over India. Next month we should see more than 200,000 payment terminals; the figure is projected to be 600,000 by mid 2012.
This brings us to the card’s supporters. State Bank of India is already on board, and NPCI is in talks with providers like ICICI Bank and HDFC Bank.
Things look good for banks too, seeing that RuPay charges should be a lot lower than those associated with the big providers.
In fact, NPCI claims they’ll be close to one-third less. Right now banks are paying an estimated Rs. 300 crore to MasterCard and Visa every year, just to process India’s plastic payments.
The idea is that financial institutions will offer RuPay to their new customers, considering that shifting all accounts at once would be too expensive. Over time, however, as cards come in for renewal, RuPay would be the option offered.
For now, the card will only work domestically, but we might see that change next year. By June, online payments will be possible too.
Along with all this, NPCI has said that there will be no minimum usage volume set, meaning that even small banks can incorporate the offering.
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