BHIM UPI, RuPay swipe Master­card, Visa

Home-grown pay­ment sys­tems cor­ner over 60% of dig­i­tal trans­ac­tions

The Hindu Business Line - - FRONT PAGE - SHISHIR SINHA

In­dia’s own Bharat In­ter­face for Money (BHIM) and RuPay cards have gar­nered over 60 per cent mar­ket share of the dig­i­tal trans­ac­tions busi­ness, push­ing back global gi­ants such as Master­card and Visa.

BHIM is a UPI-based pay­ment in­ter­face that al­lows re­al­time fund trans­fer us­ing a sin­gle iden­tity, typ­i­cally a mo­bile num­ber or a name. Uni­fied Pay­ments In­ter­face (UPI) is an in­stant pay­ment sys­tem de­vel­oped by the Na­tional Pay­ments Cor­po­ra­tion of In­dia (NPCI), an RBI-reg­u­lated en­tity. UPI is built over the IMPS (Im­me­di­ate Pay­ment Ser­vice) in­fra­struc­ture and al­lows for in­stant trans­fer of money be­tween any two par­ties’ bank ac­counts. RuPay is a card pay­ment mech­a­nism just like Master­card or Visa. Both th­ese pay­ment sys­tems have been de­vel­oped in­dige­nously.

Ac­cord­ing to NPCI, dur­ing the first seven months (AprilOc­to­ber) of this fis­cal, over 600 crore trans­ac­tions took place through debit, credit and pre­paid cards along with BHIM UPI. Of this, BHIM UPI ac­counted for about 300 crore, and RuPay cards for over 76 crore. Sim­i­larly, in terms of value, out of over ₹18-lakh crore, BHIM UPI and RuPay ac­counted for over ₹11.7-lakh crore and ₹72,950 crore, re­spec­tively.

“To­day, Visa and Master­card are los­ing mar­ket share in In­dia to in­dige­nously de­vel­oped pay­ment sys­tem of UPI and RuPay Card whose share have reached 65 per cent of the pay­ments done through debit and credit cards,” Fi­nance Min­is­ter Arun Jait­ley wrote in a blog on Thurs­day.

NPIC said that the BHIM UPI plat­form is dif­fer­ent from con­ven­tional prod­uct lines that have dom­i­nated con­ven­tional bank­ing sys­tem for long. Now, th­ese have been re­placed with Ap­pli­ca­tion Pro­gram­ming In­ter­face (API), which is in use through UPI. BHIM UPI has over 5.5 crore unique users. “A glimpse of open bank­ing strat­egy and its suc­cess can be seen in BHIM UPI that have el­e­vated in­ter­op­er­abil­ity to a new level by of­fer­ing choice on PSP (Pay­ment Ser­vice Provider) and banks too,” it added.

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.