NPCI looking to increase RuPay credit cards usage

22 May 2023 , 11:20 AM

The National Payments Corporation of India (NPCI) aims to significantly increase the adoption of RuPay credit cards in the market and is actively pursuing partnerships with banks to achieve this goal.

NPCI is collaborating closely with several prominent banks to explore strategies for promoting the usage of RuPay credit cards, as informed by two senior bankers. NPCI has internally set a target of capturing approximately 10% of the total monthly credit card expenditure within the next year.

As per data from the Reserve Bank of India (RBI), Indian credit card users spent Rs 1.3 lakh crore in April 2023 through both point-of-sale terminals and e-commerce transactions. Industry estimates suggest that RuPay currently processes around Rs 1,300 to Rs 1,500 crore. The objective is to increase this figure to Rs 15,000 crore per month.

The integration of UPI with RuPay credit cards has the potential to increase credit penetration in the country by 30%.

NPCI aims to capitalize on the dual advantages of banks receiving Merchant Discount Rates (MDR) and consumers being able to use RuPay credit cards on UPI. By leveraging this combination of benefits, NPCI intends to capture a larger market share.

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