India is creating a rival payment network to reduce dependence on Western payment networks like Visa and Mastercard. The Unified Payments Interface (UPI) allows consumers and merchants to bypass traditional card networks by connecting bank accounts directly. UPI processes over 13 billion real-time transactions monthly, accounting for 71% of all transactions in India.
RuPay has become a dominant player in India’s credit card market, processing nearly double the transactions from the previous year. The government has implemented policies to promote RuPay, including exclusive access to UPI credit card transactions. This has forced Visa and Mastercard to adapt their strategies in India, partnering with fintechs to extend card support to UPI-powered merchant terminals. The growth of UPI and RuPay poses a significant threat to Visa and Mastercard’s market share in India.
