“If you look at credit cards, we’ve recently entered the market and we’re looking at the market share of new customers. In the last 18 months, around 12-15% of new (credit card) issues have occurred on RuPay,” NPCI Chief Operating Officer Praveena Rai told PTI during an interaction.
The local NPCI is an umbrella organization to facilitate retail payments and settlement in India through the RuPay gateway. It is an initiative of the Reserve Bank of India (RBI) and the Association of Indian Banks (IBA) to create a robust payment and settlement system.
“For RuPay, it is important for us to expand the reach and distribution of RuPay cards. RuPay is an important player in the field of debit cards and prepaid cards. We are now focusing our attention on establishing a solid establishment in the credit card area as well,” Raï said.
She added that over the past two years, the Indian market has grown from around 40-42 million credit cards to around 65 million credit cards. “So there is unmet demand and consumers want more and RuPay being a program for India, we believe we will be able to meet that demand in the market,”
Rai said that to expand the base, he needed to do two things. It is already there that all credit card issuers in India should be allowed to issue RuPay cards. And, the second is to forge partnerships that can add value to customers.
She said that many credit card issuers have been issuing RuPay cards for two years, and the intention of the partnership is to provide a good proposition to customers.
Each customer segment has its own requirements. So understanding those requirements for a particular partner as well as the merchant partner so the product can go to market are the key factors in broadening the base, Rai said.
Product, technology and brand are the three things that drive RuPay forward, she said.
He added that these three people need to work closely together to deliver something truly cutting-edge and “that’s our goal.”
“We need to make a difference in the lives of customers. On the product side, we make sure to cover all segments. So, we are not just for the privileged or just for the masses.
“Across the spectrum of users, we have a super premium category, we have a premium category for the wealthy, we have cards for the mass segment to meet the financial inclusion agenda,” the official said.
Then there’s a range of credit cards, debit cards and prepaid cards, she said.
“Here I would like to say that in recent years, even between e-commerce and physical payments, it’s practically 50/50… So we are available for all kinds of payments that a consumer wants to make, ” said Rai.
And this is where technology starts to come into play to deliver a trusted user experience. Every time a card is used, it should work. “In the industry, we call this the success rate.”
NPCI has also introduced electronic payment gateway Bharat Billpay and the success rate there is high. There are many value-added propositions that have started to be created, such as the possibility of defining mandates or automatic payment.
Also, there is an EMI facility which is entered as a feature and likewise many other value added features can come in this platform, she added.
Rai said that NCPI is also working to provide tokenization-based digital transactions on payment apps and the facility will be available soon.
Tokenization refers to replacing credit and debit card details with an alternative code called a “token” in order to secure a digital transaction. A token is unique for each card.