Master­card, Visa los­ing mar­ket share to lo­cal ri­vals: FM

Mint ST - - PLAIN FACTS -

trans­ac­tions were worth $51 bil­lion in Au­gust, ac­cord­ing to cen­tral bank data.

Jait­ley said Ru­pay’s to­tal trans­ac­tions had leapt to ₹8,430 crore as of Septem­ber, from ₹1,100 crore be­fore de­mon­eti­sa­tion. To­tal trans­ac­tions done us­ing UPI had jumped to ₹59,800 crore from ₹50 crore in Oc­to­ber 2016, around the time it was launched.

re­ported last week that Master­card com­plained to the Of­fice of the US Trade Rep­re­sen­ta­tive on June 21 that Modi “as­so­ci­ated the use of Ru­pay cards with na­tion­al­ism, claim­ing it serves as ‘kind of na­tional ser­vice’.”

The Master­card note said that while Modi’s dig­i­tal pay­ments push was “com­mend­able”, the In­dian govern­ment had adopted “a se­ries of pro­tec­tion­ist mea­sures” to the detri­ment of global com­pa­nies.

The story sparked a back­lash on so­cial me­dia against Master­card in In­dia, one of the world’s big­gest pay­ments growth mar­kets.

Sev­eral peo­ple said on Twit­ter they had asked their banks to re­place their Master­card with Ru­pay, with some us­ing the hash­tag #Boy­cottmas­ter­card to voice con­cerns.

One user posted a pic­ture of a Master­card cut into pieces, while an­other up­loaded a graphic with a Master­card logo on a toi­let flush. A spokesman for the Delhi arm of Modi’s rul­ing party, the Bharatiya Janata Party, said he had asked his bank to can­cel his Master­card and switch to Ru­pay.

Master­card did not reply to emailed re­quest for com­ment on the so­cial me­dia back­lash.

Ash­wani Ma­ha­jan, who heads an eco­nomic group, Swadeshi Ja­gran Manch, which is linked to the ide­o­log­i­cal par­ent of Modi’s party, said on Thurs­day that com­pa­nies such as Master­card should be “com­pet­ing with Ru­pay, not com­plain­ing to the U.S. govern­ment”.

“They have en­joyed their mar­ket share for so long, we have the right to pro­tect and pro­mote our eco­nomic in­ter­ests,” Ma­ha­jan said.

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