RuPay is India’s own domestic card payment network, launched in 2012 by the National Payments Corporation of India (NPCI). RuPay credit cards have gained popularity in recent years as they provide a secure and cost-effective payment option that also supports the local economy.
The introduction of RuPay marked a major milestone in India’s payments landscape. Before RuPay, most card transactions in India were facilitated by international payment networks like Visa and Mastercard. While these global networks provided convenience, they also led to significant foreign exchange outflows from India in the form of fees.
RuPay addressed this issue by creating a domestic network that keeps transaction fees within India. This article will look at how RuPay facilitates local and secure digital payments through its best credit card offerings.
Supporting Local Transactions
One key benefit of RuPay credit cards is that they promote transactions within the Indian payment ecosystem. When you use a RuPay card issued by an Indian bank for payment, the entire transaction cycle is completed domestically across the RuPay network without the need for any international intermediaries.
This helps save foreign currency charges that are typically payable to card networks for the settlement of international transactions. RuPay thus supports the ‘Make in India’ and ‘Digital India’ initiatives by providing cost-effective payment products for Indian consumers and businesses.
Driving Financial Inclusion
RuPay credit cards have played a significant role in expanding financial inclusion in India by making credit and digital payments accessible to a wider population. Traditionally, credit cards were primarily used by urban, high-income individuals due to stringent eligibility criteria and high fees. However, RuPay has changed this by offering affordable credit cards with lower joining fees, relaxed eligibility norms, and a strong presence in rural and semi-urban areas. RuPay credit cards have enabled individuals from different socio-economic backgrounds—including farmers, small business owners, and self-employed professionals—to access formal credit.
Enhanced Security Features
Security is a major concern when it comes to digital payments. RuPay credit cards provide multiple layers of security to minimise fraud and data theft risks during transactions.
Some standard security provisions offered by RuPay include EMV chip-and-PIN authentication for in-person payments and two-factor authentication requirements for online card transactions. Data encryption is used throughout the transaction chain to prevent unauthorised access to cardholder’s personal information.
RuPay also offers customised protection for transactions where cards are not physically presented, such as online payments. Features like ‘e-KYC’ for buyer verification, ‘e-mandate’ for recurring payments, and AI-based fraud detection systems all help to make RuPay payments more secure.
Biometric Enabled Cards
Going a step further, RuPay offers cutting-edge biometric credit cards for added security and convenience. These cards have an embedded fingerprint sensor that is used to authenticate transactions in place of PIN codes.
Before the payment is authorised, the cardholder has to provide their fingerprint matching with the one saved in the card’s memory. This offers a hassle-free and secure payment option that reduces transaction decline rates due to incorrect PIN entries.
Several leading banks now issue these biometric RuPay cards, which are also enabled for contactless payments.
Lower Costs
By cutting down multiple cost components and keeping the payment ecosystem domestic, RuPay helps banks to significantly save on card payment processing charges. Banks pass these cost savings to Indian consumers in the form of:
- Lower joining and annual fees for RuPay cards
- Lower interest rates on outstanding credit card spend
- Higher reward points and cashback offers
Merchants’ acceptance of RuPay cards is also cheaper, thanks to discounted merchant discount rates or MDR applicable to RuPay transactions.
Customised Offerings
RuPay allows extensive customisation according to Indian requirements—something not readily available from international card networks. For example, RuPay has launched special credit cards targeted at farmers, self-help groups, and small road transport operators to meet their unique needs.
There are also co-branded RuPay cards issued in partnership with government bodies, public sector companies, telecom providers, etc. that offer benefits tailored to these segments.
Wider Acceptance
RuPay is now accepted across all ATMs, POS terminals and ecommerce sites in India, along with acceptance at millions of global merchants. Strategic partnerships have expanded RuPay’s international acceptance.
Additionally, RuPay has also partnered with international gateways like Mastercard, Visa, and JCB under co-badging arrangements. This allows RuPay to issue ‘Rupay Platinum’ or ‘Rupay World’ cards that leverage the RuPay framework while providing wider acceptance.
Conclusion
RuPay has made significant progress in a short time to become a formidable payment network backed by the Indian government, banks, and consumers. With cutting-edge technology upgrades happening regularly, the acceptance and adoption of RuPay cards is expected to grow manifold in the future.
As RuPay focuses on aspects like security, cost, and customisation for the Indian market, it is poised to be a game-changing disruptor. For Indian consumers and businesses, RuPay credit cards can serve as a preferred payment tool supporting digitalisation in a self-reliant manner.
