There’s no doubting the fact that India is currently undergoing a massive digital transformation, and perhaps the biggest evidence of it can be seen in the retail payments’ space. National Payments Corporation of India (NPCI), the organization that manages and handles digital payment solutions, has introduced many homegrown payment/cash transaction systems, with UPI and RuPay being two of the most well-known of the lot. And if the newest information is anything to go by, things are about to get only better. Also Read - PM Modi launches e-RUPI digital payment solution: What is it? Is it like Bitcoin? and more questions answered
According to analysis done by Business Standard, indigenous solutions like United Payments Interface (UPI) and RuPay accounted for 65.2-percent of all debit/credit card-based transactions done at retail outlets around the country, by the end of August 2018. If we talk about cash transactions, the share of these two payment systems was 78.3-percent, according to Business Standard. Also Read - Exclusive: Jio Pay with UPI now available to Jio Phone users in India, here's first look
If this trend continues, it’s quite possible that UPI and (more directly) RuPay will overtake their global competitors like Visa, Mastercard, and American Express, for overall retail transactions in India. Also Read - WhatsApp not authorized to go live with UPI full scale operations, RBI tells Supreme Court
As noted by Business Standard, one of the major reasons for the increase in popularity of India’s own retail payments solutions are their low transactional charges, which is why the industrial sector is increasingly adopting them. According to analysts, banks issuing major credit/debit cards charge a maximum of Rs 3 per transaction. On the contrary, RuPay charges just Rs 0.09 (9 paise) per transaction.