RuPay, a new card payment scheme launched by the National Payments Corporation of India (NPCI), has been conceived to fulfill RBI’s vision to offer a domestic, open-loop, multilateral system which will allow all Indian banks and financial institutions in India to participate in electronic payments.
RuPay”, the word itself has a sense of nationality in it. “RuPay” is the coinage of two terms Rupee and Payment. The RuPay Visual Identity is a modern and dynamic unit. The orange and green arrows indicate a nation on the move and a service that matches its pace. The color blue stands for the feeling of tranquility which is the people must get while owning a card of the brand ‘RuPay’. The bold and unique typeface grants solidity to the whole unit and symbolizes a stable entity.
Advantages of RuPay Card
The Indian market offers huge potential for cards penetration despite the challenges. RuPay Cards will address the needs of Indian consumers, merchants, and banks. The benefits of RuPay debit card are the flexibility of the product platform, high levels of acceptance and the strength of the RuPay brand-all of which will contribute to an increased product experience.
- Lower cost and affordability: Since the transaction processing will happen domestically, it would lead to lower cost of clearing and settlement for each transaction. This will make the transaction cost affordable and will drive usage of cards in the industry.
- Customized product offering: RuPay, being a domestic scheme is committed towards development of customized product and service offerings for Indian consumers.
- Protection of information related to Indian consumers: Transaction and customer data related to RuPay card transactions will reside in India.
- Provide electronic product options to untapped/unexplored consumer segment: There are under-penetrated/untapped consumers segments in rural areas that do not have access to banking and financial services. Right pricing of RuPay products would make the RuPay cards more economically feasible for banks to offer to their customers. In addition, relevant product variants would ensure that banks can target the hitherto untapped consumer segments.
- Inter-operability between payment channels and products: RuPay card is uniquely positioned to offer complete inter-operability between various payments channels and products. NPCI currently offers varied solutions across platforms including ATMs, mobile technology, cheques etc and is extremely well placed in nurturing RuPay cards across these platforms.
Features and Benefits of RuPay Card
- Complimentary Lounge Access Program – Domestic & International
- 24X7 Concierge Services
- Earn Cashback time after time
- Comprehensive Insurance Cover
- Exclusive Merchant Offers
RuPay is India’s indigenous card scheme created by the National Payments Corporation of India.It was conceived to fulfill RBI’s vision to offer a domestic, open-loop, multilateral system which will allow all Indian banks and financial institutions in India to participate in electronic payments.It is made in India, for every Indian to take them towards a “less cash” society.
RuPay is a homegrown card payment scheme launched by Reserve Bank of India-backed National Payments Corporation of India (NPCI). RuPay, the name being a portmanteau of “rupee” and “payment”, has been heavily promoted by the government. The seven-year old card system competes against global payment network firms like MasterCard and Visa. The card broadly comes in five variants. One such variant, RuPay Contactless card, acts as a national common mobility card, allowing users to pay for bus and metro charges besides making payments for toll and parking. It can be used at ATMs as well as for online payments.
Why is RuPay gaining prominence?
The idea of RuPay was devised to promote the use of electronic payments as well as to expand the idea of financial inclusion. The prime minister’s flagship scheme for financial inclusion to provide affordable basic banking services, the Jan Dhan Yojana, gave impetus to the payment scheme as its debit cards were issued to every account opened under the scheme. It moved towards capturing close to 60% of the market in terms of issuance of cards. Besides, RuPay is cheaper and more affordable compared to foreign company cards such as MasterCard and Visa, as its transactions are processed domestically.
RuPay card has a very limited international presence, even as it has tied up with global payments networks like Discover, Diners Club International, PULSE and others to help customers make international purchases and withdraw cash outside India. People travelling abroad tend to prefer Visa, MasterCard and American Express due to their higher acceptance and comfort built over the years. Typical users of cards are still shy of using RuPay due to factors like lack of awareness and brand appeal.
The Centre and RBI have been trying to promote digital transactions. NPCI, banks and the Centre will widen and deepen the usage of RuPay to enhance its brand value globally, according to RBI’s vision for the next three years. To ease remittances into India and help Indian travellers make payments overseas, a Nandan Nilekani-led expert panel on digital payments recommended NPCI to prepare an international-ization plan for Indian payment systems such as RuPay and BHIM unified payments interface.